Beyond the haze : Perth's dynamic property sector in 2024

As with all major cities around Australia, Perth's real estate market has been the subject of continuous micro transformation and evolution. As we navigate a largely optimistic Q1/24 and shake off the haze of a notoriously quieter period, any home owners, buyers and investors looking to make a move, should now look to understand both short and midterm outlooks and what that means for them.

Perth has experienced steady population growth, driven by factors such as employment opportunities, lifestyle appeal, relative affordability and a robust economy. This influx of residents has not only fuelled demand for housing but has also influenced the city's demographic composition. Perhaps we are seeing a younger and more diverse population reshaping housing preferences, emphasizing modern amenities and sustainability.

The balance, or more accurately imbalance, between supply and demand is central to the property market's health. Perth's real estate market has been characterized by a supply shortage in recent years, which has inevitably put upward pressure on property values.

Rising property values, coupled with supply constraints, have presented affordability challenges for aspiring homeowners. This has sparked discussions on innovative financing models, shared equity schemes, and government initiatives to make homeownership more accessible.

Changing demographics and lifestyle preferences have led to shifts in housing choices. Urban apartments, townhouses, and eco-friendly developments are gaining popularity among buyers who seek convenient living options with reduced environmental footprints.

Perth's real estate market is embracing technological advancements and the concept of smart homes. From energy-efficient features to integrated home automation systems, these innovations are becoming key selling points for properties, enhancing their value and appeal.

As you would expect, Perth's property market is not uniform; regional variations exist. Some suburbs and even 'mini markets' are experiencing more significant capital growth and demand than others. Investors and homeowners should be aware of these nuances when considering where to park their capital.

As a whole, we rely heavily on government policy and initiatives to re-introduce some equilibrium into the market. Programs aimed at stimulating housing construction, improving infrastructure, and addressing supply issues are of course influencing the market's direction and trajectory.

Perth's economic stability and diverse industry sectors, including resources, technology, and healthcare, are contributing to the real estate market's resilience. Economic strength is a fundamental driver of sustained property growth and WA has historically performed well in this space.

Under the blue skies of summer, Perth's real estate market stands at an exciting crossroads. Despite the complexity of the many macro drivers including population growth, supply and demand dynamics, affordability concerns and government policy, our exuberant real estate market is perhaps best positioned of all capital cities in Australia to withstand any inclement weather Q2 and beyond may bring.

The future of Perth's real estate market will likely be shaped by those who anticipate, adapt, and capitalize on the transformative forces driving our beloved city's property sector.