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Ray White Group chief economist Nerida Conisbee said all suburbs across Australia were now seeing year-on-year price growth, with the top performers in Perth’s outer suburbs.
“It is simply cheaper to buy than to build at the moment,” she said.
“A home built in Maddington in 2019 is far cheaper than one being built now. “This is driving more people into the established market.”
Maddington, Armadale, Gosnells, Camillo and Calista are the top five suburbs in Australia for price growth in the 12 months to April, recording gains of more than 25 per cent.
The median unit sale price improved strongly over the March 2024 quarter, recording 3.4 per cent growth to reach $425,000; 6.3 per cent higher than March 2023.
By comparison, units had recorded 2.8 per cent growth during the previous quarter and only 1.5 per cent over 2023.
The median unit sale price remains below the record of $450,000 set in 2014.
Australia’s housing crisis continues with record-setting Perth rental market
The rental market kept setting records in the first quarter of the year.
The median weekly dwelling rent hit a new high at the end of March of $650, up 8.3 per cent from the end of December ($600) and 18.2 per cent from the end of March 2023 ($550).
The median weekly house rent also set a record, rising 4.8 per cent over the quarter (18.2 per cent over the year) to $650.
The median weekly unit rent also set a record, rising 5.3 per cent from the end of December (20.0 per cent from the end of 2023) to $600.
Rental listings remained low, sitting below 2000 over the quarter, and the vacancy rate dropped to a record low of 0.4 per cent at the end of March.
REIWA’s Cath Hart said there were signs demand was moderating in some sectors.
“Some agents are reporting a slowdown in demand at the higher end of the market; however, it remains strong in the most affordable price brackets,” she said.
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“We are also seeing some self-moderation of demand. This includes an increase in tenant household sizes, tenants choosing to buy where possible and people simply choosing to stay in the family home longer or moving back in with family to avoid the rental market.
“In what we hope becomes an ongoing trend, supply is getting a boost with some newly built homes owned by eastern states investors finally coming to the rental market. This is predominantly in outer-lying suburbs where there has been land to develop.
“And a large refurbishment project in Maylands was completed in March, adding over 100 apartments to the market.”
