Perth has retained its title as the strongest property market in Australia, with house prices up 15.3 per cent over the past 12 months.
According to the Ray White January House Price Report, prices also increased 0.6 per cent this month.
Unit prices are also up 10.2 per cent annually and 0.4 per cent in January, however Adelaide slightly outpaces Perth when it comes to unit price growth, with prices in the SA capital climbing 10.4 per cent over the past 12 months.
Ray White Group Chief Economist Nerida Conisbee said the latest figures also showed Sydney prices had fallen for the second month in a row.
House prices in Sydney are still up 5.8 per cent annually, but fell 0.2 per cent this month, after dropping by the same amount in December.
“The difference in market conditions reflect the drivers of growth,” Ms Conisbee said.
“Sydney is far more sensitive to interest rate changes and it is likely that the softer conditions over the past two months reflects this.
“Meanwhile, mining conditions in Western Australia and South Australia are not only driving economic growth but also attracting interstate migrants, investors and creating wealth.
“This is fuelling price growth in both Perth and Adelaide.”
It now costs $728,303 to buy a house in Perth, $760,215 in Adelaide and $1.496 million in Sydney.
The softest markets continue to be Melbourne and regional Victoria.
House and unit prices remained steady in Melbourne this month, while prices in regional Victoria increased only marginally.
“Population growth has increased post pandemic, particularly international migration, and this will be positive in 2024,” Ms Conisbee said.
“However, it is likely that the impact of tough pandemic restrictions continue to weigh on economic growth for the state.
“While Sydney saw a decline in price over the past two months, and Melbourne remains comparatively weak, it is likely we will see growth this year for both cities.
“The probability of a rate cut is now far higher than it was less than six weeks ago.
“If this does happen, it is likely to fuel price growth in not only our largest cities but also other parts of the country.”