Australia’s western state has led the charge in home value growth for yet another month.
The latest home values data released by CoreLogic’s Home Value Index (HVI) has revealed that Perth continues to dominate the leaderboard in home value growth out of the combined capitals, with home values increasing by 1.6 per cent in January.
Perth has consistently taken the top spot in CoreLogic’s HVI, with increases of 1.5 per cent in December, 1.9 per cent in November, and 1.8 per cent in October.
CoreLogic research director Tim Lawless said Perth continues to be the standout among the capitals for a “persistently rapid rate of capital gains”.
“Perth home values rose a further 1.6 per cent in January, on par with the city’s growth trend in November and December and only slightly lower than the recent high of 1.8 per cent recorded in October,” Mr Lawless said.
“The western capital continues to see housing demand outweigh supply, helping to push values 16.7 per cent higher over the past 12 months.
“Despite that, housing prices remain relatively affordable compared with most capital cities, with the median dwelling value sitting just under $677,000.”
CoreLogic’s Mapping the Market report previously revealed that 98.1 per cent of house and unit markets across Perth increased in value over the three months to October, with 96.3 per cent of suburb dwelling markets reaching record highs by the end of the month.
Overall, the national HVI revealed that the country’s housing upswing continued throughout January, with an increase of 0.4 per cent, marking the 12th consecutive month of value increases.
Meanwhile, PropTrack’s Home Price Index revealed that Perth was the “only notable” capital to record price gains in January, up by 0.5 per cent from December 2023, and up 15.45 per cent higher than in January 2023.
According to PropTrack, Western Australia’s affordability compared to other states is “likely supporting prices as well”.
Nationally, home prices in PropTrack’s index revealed a slight 0.02 per cent growth, holding steady following a modest fall in December.
PropTrack senior economist Angus Moore said home price growth has slowed from mid-2023, remaining relatively unchanged since November.
“Several factors have contributed to the slowdown, including the additional interest rate rise in November and more homes hitting the market in late winter and spring, giving buyers more choice,” Mr Moore said.
“Regional areas have very slightly outpaced capital cities over the past few months. Even so, capital city areas remain the stronger performer over the past year.
“Strained affordability – which sits at its worst level in at least 30 years – is likely weighing on home prices. Nonetheless, we expect prices in 2024 will still grow, albeit at a slower pace than in 2023.
“A more stable interest rate environment, coupled with ongoing population growth and a low level of new building activity, will support home price growth this year.”
Furthermore, NAB’s Residential Property Survey Q4 2023 revealed the state index for dwelling values for Western Australia grew by 96 bps, the highest among the other states. This was followed by Queensland with a gain of 54 points and NSW with 44.