Perth’s booming real estate helps drive national housing values past $10 trillion

The value of Western Australia’s housing market has hit a record $763 billion, helping drive the nation’s combined residential real estate value to rebound to more than $10 trillion.

CoreLogic head of research Eliza Owen said there was no denying the Perth housing market was firmly in an upswing phase, which had pushed the national real estate value past $10 trillion at the end of August.

Owen said the upwards trend came despite a cost-of-living crisis, low consumer sentiment levels and four increases in the cash rate so far this year amid the fastest rate-hiking cycle on record.

But she said net overseas migration, constrained supply and the use of savings was propelling housing values higher despite unfavourable growth conditions.

“Demand for housing is being pushed higher by a combination of returning overseas arrivals, and a drop-off in overseas departures,” she said.

“Combined with a persistently low average number of people per dwelling across the capital cities, this is pushing the need for housing higher, and may be contributing to more competitiveness for properties on the market, especially considering rental vacancy rates remain at record lows.”

CoreLogic’s Perth home value index increased 0.9 per cent in August and 2.9 per cent over the past three months. The current median value of a house sits at $634,169. Australia wide the median home value sits at $732,886.

Perth, Adelaide and Sydney are the only capitals to show growth over the past year, with Perth recording the highest increase at 4.5 per cent.

The imbalance between demand and supply looks to be entrenched and remains a key factor in the upwards pressure on home values in Perth.