The housing market in Western Australia has been on a tear in recent years.
Property values were falling in 2019 and 2018 but reversed course during lockdowns in 2020 and began to gainly swiftly year by year in the time that followed.
2021 saw a 10.4% increase in property values, mirrored in 2022 by a further 10% jump.
That momentum is unlikely to falter this year, according to Perth-based property investment consultants Momentum Wealth, which is predicting a third year of at least 10% growth in WA housing values.
Three core contributing factors
Momentum Wealth identified three factors contributing to higher property values in 2024 – a robust WA economy, significant population growth and demand for housing outstripping supply.
The Western Australian economy’s total output of Gross State Product hit $445.3 billion in 2022-23, representing 17.4% of Australia’s GDP on the back of a mammoth mining industry.
Low unemployment is also increasing disposable income, driving up demand for houses – especially in desirable areas with limited supply.
WA is also attracting new residents at a record pace this year, increasing demand via population growth. The western state’s population grew by 2.8% in the year to March 2023 (most recent figures available), the highest increase in the country.
All of that contributes to a hot property market with more houses sought than are built.
“With the increase in population and smaller household sizes due to COVID-19, over the past four years to March 2023, the demand for dwellings in WA has increased by over 80,000, but when you consider building completions less demolitions, we have only been able to add around 48,500 dwellings to the market," he said.