Outer Greater Perth suburbs have enjoyed the highest growth in property values as the city largely defies the national gloom surrounding the housing market.
Homes in Kwinana, Mandurah and Rockingham all increased by more than 8 per cent last year, according to fresh data from property analysts CoreLogic to be released on Tuesday.
Other top performers were Serpentine, Wanneroo and Armadale, up nearly 7 per cent, as well as Gosnells and Mundaring.
Median house values across Perth increased 3.9 per cent over 2022, with a 0.2 per uptick in December to $586,721. Unit values increased 1.1 per cent, with a 0.4 cent decline last month, to $406,621.
House values in regional WA increased 5.6 per cent over the year, including a 0.5 per cent increase in December.
The only other capitals where home values increased in 2022 were Adelaide, up 9.6 per cent to $701,493, and Darwin, up 4.5 per cent.
Meanwhile values in Melbourne have slumped and are nearly at pre-pandemic levels, while Sydney home values over the year were down 13.2 per cent to $1.22 million.
The peak of the Perth cycle was in July, with values climbing 25.9 per cent from the onset of the pandemic in early 2020. Since then, values have declined 0.6 per cent — half the pace of Adelaide’s, and well behind Melbourne, Brisbane, Canberra, Hobart and Sydney.
Nationally, dwelling values declined 5.3 per cent over the year — the largest since the global financial crisis in 2008 wiped 6.4 per cent from home values. Growth in values stopped once the Reserve Bank of Australia started hiking interest rates in early May — the 3 percentage point increase to date is the largest on record.
It comes after analysis by comparison website Canstar revealed Perth is the only capital city in which the average earning single prospective home buyer could afford mortgage repayments on a mid-priced home.
The number of properties advertised for sale nationally in the four weeks to Christmas was well below the same period in 2021 and the five-year average.
CoreLogic research director Tim Lawless said the balance between new listings and the number of home sales would be a key national trend to watch early this year.
“We typically see a seasonal surge in the number of new listings added to the market from early February through to Easter,” he said.
“If this seasonal pattern plays out over the coming months, against the backdrop of higher interest rates and a further drop in buying activity, we could see housing prices responding negatively, as advertised supply levels rise and vendors are forced to discount their prices more substantially.”
Separate data from rival firm PropTrack, also to be released on Tuesday, put Perth’s median dwelling value at $560,000 — a 0.05 per cent decline over the month.
The different methodology used by the rival firms explains the difference in the figures.
The CoreLogic figures also highlight the challenge for Perth’s renters. Exacerbated by low stock levels and a tight vacancy rate, house rents increased 11.3 per cent over the year, the third-highest increase of all capitals this year.
Unit rents increased 10.4 per cent, the fourth-highest of the capitals.
“As renters face worsening affordability pressures, it’s logical to expect more rental demand to transition towards higher density options, where rents are generally more affordable, or for rental households to maximise the number of tenants in a rental dwelling,” Mr Lawless said.
He expects the tight conditions to continue due to a lack of rental supply.
Top five Perth regions for property value growth in 2022
1. Kwinana. Median: $420,804. Increase: 10.6%
2. Mandurah. Median: $490,728. Increase 9.1%
3. Rockingham. Median: $483,663. Increase: 8.9%
4. Serpentine-Jarrahdale. Median: $520,281. Increase: 6.9%
5. Wanneroo. Median: $522,680. Increase: 6.8%
Source: CoreLogic
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