2024 Perth Rental Property Predictions
Discover what’s in store for Perth investors during 2024 while reflecting on the year that has been
2024 has arrived and many WA-based property investors and owners are wondering if we will see another year of big performance figures.
Take a look at what happened to Perth property prices during 2023 and what the experts are predicting for the year ahead.
Looking back: Perth property in 2023
Property prices were generally strong across Australia in 2023, with CoreLogic reporting a nationwide Home Value Index (HVI) rise of 8.1 per cent. When the statistics are broken down by capital cities, Perth outperformed the others, with a 15.2 per cent increase.
In September 2023, Perth home sales reportedly hit a 30-year low. Meanwhile, the relatively low prices (compared to east coast cities like Sydney and Melbourne) saw investors from interstate and overseas circling. One of the benefits of investing in Perth is that you can choose a premium suburb that’s close to the CBD and get a lot more for your money than in other capital cities, or identify a more cost-effective pocket that is set for excellent growth (we can share some advice if you’re not sure exactly where to invest).
One of the benefits of investing in Perth is your money can afford you something closer to the city or within proximity of desirable suburbs for prices that are affordable
By October, increased demand and lack of supply saw new records; the median house price in Perth crept over the $700,000 mark for the first time. Meanwhile, Perth holds the current title of Australia’s tightest city rental market, with rental vacancy sitting at 0.7 per cent.
Perth suburb performance
Overall growth and higher-than-ever prices have been witnessed in almost every postcode, especially in more sought-after parts of Perth. Taking a look at the suburbs where D Residential operates, owners and investors saw the following results:
- Leederville: Leederville had a great year with positive growth. It is now sitting on a median house price of $1.12 million.
Median rental price: $800 per week.
- Mount Hawthorn: While Mount Hawthorn home values settled slightly last year, the median house price is still an above-average $1.2 million. In this suburb, rental growth is up by 13.6 per cent.
Median rental price: $750 per week
- Mount Lawley: A 9.1 per cent rise in sales growth saw Mount Lawley reach a median house price of $1.3 million in 2023.
Median rental price: $800 per week
- Glendalough: Glendalough’s median sales price settled this year to $610,000. but the suburb saw the rental prices increase.
Median rental price: $550 per week.
- Joondanna: With its significant number of villas, townhouses and units, Joondana’s median price is sitting at around $790,000, after rising 7.5 per cent in 2023.
Median rental price: $650 per week.
If you have an investment property that is leased to tenants in one of these suburbs and the lease has expired or is about to, get in touch with our team. You may be able to update the rent to more closely reflect the local average.
Perth property: the year ahead
If you’re an investor, there’s good news. Perth property prices are expected to continue growing at a steady rate throughout 2024.
Even with interest rates set to remain high, experts are predicting a good start to the year and annual growth of around 8 per cent.
The continuing supply issue, combined with enthusiasm from out-of-area investors looking to avoid new taxes being introduced in the eastern states will fuel the fire, making Perth homes hot property throughout the next 12 months.
Perth landlords are expected to be able to offset high interest rates this year thanks to limited availability and rising rental yields. Vacancy rates reached record lows of 0.3 per cent during 2023 and are yet to break the 1 per cent mark, so competition remains high with quality tenants readily available, who have the ability to pay well.
Act fast for the best capital gains
If you’re looking to buy an investment property in Perth in 2024, competition will be tight but the anticipated returns definitely make it worth it to take action. Home values are almost certain to grow in value during 2024 but if you want to maximise outcomes for the long term, you need to make sure you have quality tenants and a reliable property manager.
Looking for the best property managers in Perth? Contact D Residential today.
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