A national property report has poured some cold water on Perth’s property market, claiming it is showing the first signs of tapering off from a three-year boom.
The much-vaunted Rising Stars 2024 report by Canstar and Hotspotting ranks Perth as the fourth best place to invest, dropping down from third place in last year’s report.
Perth had outperformed last year’s expectation in the Rising Stars report, ending 2023 as the national leader for price growth.
CoreLogic figures show its median house price rising 15.6 per cent, compared to the national average of 8.6 per cent, while Perth’s median unit price increased 12.4 per cent, which was almost double the national average of 6.4 per cent.
“We are now seeing the first signs of moderation in the three-year Perth property boom, as sales activity starts to taper off from the recent highs,” said the 2024 report, released on Monday.
“The market share of suburbs with positive rankings dropped notably in the second half of 2023 – and, for the first time in three years, suburbs with negative classifications are almost as numerous as the positive ones.
“While the Perth market remains vibrant, it’s no longer a national leader in sales momentum. Prices will likely rise again in 2024, but the West Australian (WA) capital probably won’t be the national leader this year.
“Perth still scores highly on three of our metrics, but is relatively weak on two others, and our overall ranking for Perth is fourth, although close behind the top three (Brisbane, Adelaide, and Sydney).”
The report said buyers need to be more selective about their choice of locations.
Assessing each suburb on give metrics — sales volumes, quarterly price growth, vacancy rates, rental growth, and infrastructure spending — it included ten Perth suburbs in the list of 110 rising stars around the nation.
Five of the ten suburbs included Balcatta, Belmont, Bentley, Gosnells, and Midland.
Four regional WA towns were also included in the list.
CLICK HERE TO SEE THE FULL LIST OF PERTH’S BEST SUBURBS TO INVEST IN 2024