Perth Property Roundup for 2022

2022 was an interesting year for property prices, particularly in Perth.

We started the year with the ‘long lock-in’, with closed borders and many people anxious to see their families. However, despite the strict rules, COVID saw many people relocate to Perth or come home because of the relative safety and freedom the state offered. This resulted in property prices bucking the national trend in many postcodes.

What happened to Perth property prices in 2022?

On the east coast, average property prices took a tumble over the last twelve months.

In the west, we have had much better results, with CoreLogic recently reporting that Perth house prices are yet to see a reversal in the same way as their eastern counterparts.

To break down some recent numbers:

• Average drops for Perth were far less significant than for other capital cities (e.g. Perth experienced a 0.4 per cent drop for the September quarter, as compared to a 6.1 per cent drop in Sydney)
• Perth dwellings increased in YOY value by 4.1 per cent
• Perth homes spend an average of 20 days on the market, which is low in comparison to other capital cities
• Perth’s median rent price held steady during 2022, remaining at around $500 per week.

REIWA CEO Cath Hart attributed Perth’s strong property market performance to the following:

• WA’s strong economy and finances
• Perth remaining the most affordable capital city in Australia
• No indicators that house prices will fall drastically any time soon.

According to the REIWA, Perth’s best performers at the end of 2022 were Bentley (up 3.1 per cent to $500,000), Subiaco (up 2.1 per cent to $1,675,000), Bayswater (up 2.1 per cent to $720,000), Dawesville (up 2.0 per cent to $520,000) and Falcon (up 1.9 per cent to $453,500).

Some of the Perth suburbs where we manage properties also delivered excellent results for investors in 2022. These include:

• Leederville – up 16.8%
• Mount Hawthorn – up 22.5%
• Mount Lawley – up 9.4%
• Glendalough – up 16.5%
• Joondanna – up 0.7%

These figures reflect YOY increases, compared to November 2021.

When it comes to rental properties, vacancy is sitting at a record lows of under one per cent. This means investors and those who are planning to invest can have confidence about generating strong yield from their properties.

The forecast for 2023

With interest rates rising and some people set to experience mortgage stress in 2023, the fate of the Perth property market is difficult to predict.

However, the general forecast is that the Perth market will continue to hold strong, partially thanks to positive interstate and overseas migration. One forecaster wrote recently in The Property Tribune that “a rise in house prices of 4% in 2024/25 is expected to see the median house price reach $679,000 in June 2025.”

With the job market expected to remain robust, lower than usual levels of stock on the market and Perth being priced as one of the most competitive markets in the country, the outlook for property is a positive forecast over the next twelve months.

Planning to invest?

While there is an indication of a positive future for homebuyers and investors in Perth, if you do plan to invest you need a clear strategy as well as good support. An investment journey can go sour if you don’t have the right tenants and if the property falls into disrepair – so contact D Residential to help you achieve the best results tailored to you.

Need a property manager in 2023? Contact D Residential today.