Australia’s national home values saw a 0.5% increase in July, marking the 18th consecutive month of growth,
consistent with the rise recorded in June. Since experiencing a 7.5% decline between May 2022 and January 2023,
the national Home Value Index (HVI) has rebounded by 13.5%, consistently reaching new record highs since
November last year.
Despite the overall positive growth, momentum is slowing, and conditions are becoming more varied across
regions. Over the past three months, three capitals saw declines in values: Melbourne decreased by 0.9%, Hobart
by 0.8%, and Darwin by 0.3%. Sydney’s growth rate slowed significantly to 1.1%, compared to the 5.0% quarterly
gain from the same period last year. Consequently, national home values rose by 1.7% over the past three
months, down from the 3.2% increase seen last year.
Mid-sized capitals like Perth are defying the slowing trend. Perth experienced a quarterly growth rate of 6.2%,
while Adelaide’s growth rate accelerated to 5.0%, the fastest since May 2022. Brisbane’s values rose by 3.8%
quarterly, although this is a decrease from the 4.7% increase recorded last year.
Perth’s median house price is projected to grow by over 20% in 2024, potentially reaching $740,000 by year-end,
according to REIWA’s latest quarterly update. REIWA CEO Cath Hart highlighted that demand remains robust,
with houses selling quickly and prices rising steadily. As of June, Perth’s median house price was $668,000,
marking an 11.3% increase since December 2023 and a 22.6% rise from the previous peak in 2014.
The median unit sale price is also expected to reach a new high, having grown 8.3% since December 2023 to
$445,000 by June. This is just shy of the 2014 peak of $450,000 and is likely to surpass it soon if current trends
persist.
Strong population growth and constraints in the building industry are driving the market. WA saw a 3.3%
population increase in the year to December, with around 79,000 net arrivals from overseas and interstate
migration, significantly boosting housing demand. Despite the faster completion of new homes, overall housing
completions in Perth remain low, creating a supply-demand imbalance
