09/05/2022 - 10:03

Perth home values hit a record high

09/05/2022 - 10:03

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Perth's median house price in April was a 24.5 per cent increase on June 2020.

Perth home values hit a record high
CoreLogic data reveals Perth's median house price crept to a new record high in April 2022.

Perth median house prices have hit a new record high of $552,128, after almost eight years of decline and recovery, CoreLogic data shows. 

CoreLogic’s latest property market indicator shows Perth’s indexed median dwelling value of $552,128 in April was a 24.5 per cent increase since June 2020.

CoreLogic’s recent 1.1 per cent median house price increase for Perth in April brought market values 0.9 per cent higher than the previous record in home value index for June 2014.

House values led Perth’s dwelling price growth, with unit values still 13.1 per cent below the record high of September 2013.

“Recent growth in home values has been supported by a recovery in mining activity, a sub 4 per cent unemployment rate, strong jobs growth and positive interstate migration to WA since the September 2020 quarter,” the report read.

The report added that the expansion of mining employment should result in some upside for WA amid the global recovery from the pandemic and disruptions to commodity exports from Russia and Ukraine.

“However, capacity constraints from a tight labour market and materials shortage may prevent these potential gains from being fully realised.”

Dwelling values in Perth more than doubled between January 2000 and January 2007, as investment in the mining sector tracked a similar trajectory. 

The financial services group said private business investment associated with the mining sector almost doubled nationally in this period. 

"Commodities across Western Australia were in high demand through the 2000s, due to rapid growth in the Chinese economy," the report read. 

"This period saw swift economic expansion across WA, a surge in overseas migration to the state, and employment growth in mining and construction of around 73 per cent between February 2000 and February 2007." 

 

The Real Estate Institute of Western Australia has forecasted a 10 per cent increase in Perth dwelling values during 2022.

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