How does the cost of housing in Perth compare to Sydney and Melbourne

 

Comparison of Housing Costs: Perth, Sydney, and Melbourne

When considering a move to Australia, housing costs are a significant factor. Here’s how the housing market in Perth compares to Sydney and Melbourne based on recent data.

1. Median House Prices

• Perth: The median house price is approximately AUD 665,000 as of June 2024, reflecting a robust market with recent growth of about 18.8% year-on-year.
• Sydney: The median house price stands at around AUD 1.12 million. The market has seen significant fluctuations, with many suburbs now exceeding AUD 1 million.
• Melbourne: The median house price is about AUD 860,000 for 2024, showing a stable market but still considerably higher than Perth.

2. Rental Costs

• Perth: The average rent for houses is about AUD 650 per week, while units average around AUD 600 per week.
• Sydney: Rental prices are considerably higher, with average house rents around AUD 1,200 per week and units averaging AUD 800 per week.
• Melbourne: Rental costs are also high, with houses renting for approximately AUD 1,000 per week and units around AUD 700 per week.

3. Affordability

• Perth: Offers a more affordable entry point into the housing market, with prices below the national average. The city provides good opportunities for investors and first-time buyers alike.
• Sydney: Known for its high property prices, Sydney presents significant affordability challenges, particularly for first-time buyers. The high demand and limited supply contribute to ongoing price pressures.
• Melbourne: While more affordable than Sydney, Melbourne's housing market still poses challenges for affordability, especially in sought-after suburbs.

4. Price Growth Trends

• Perth: The property market has shown resilience, with consistent growth despite economic fluctuations. The demand for housing has risen, driven by a combination of local and interstate migration.
• Sydney: After a peak in 2023, the market has stabilized, but prices remain high. Forecasts suggest modest growth in the coming years, contingent on economic conditions and interest rates.
• Melbourne: The market has experienced steady growth, but it is not as volatile as Sydney’s. Continued population growth and urban development are expected to support prices in the long term.

Summary

In summary, Perth offers a significantly lower cost of housing compared to Sydney and Melbourne, making it a more accessible option for homebuyers and renters. With a median house price of AUD 665,000, it stands in stark contrast to Sydney's AUD 1.12 million and Melbourne's AUD 860,000. Additionally, rental prices in Perth are more manageable, contributing to its appeal as a relocation destination.