INDEPENDENT NEWS

How The Housing Markets Of Perth, Australia, And Auckland, New Zealand Compare In 2024

Published: Tue 5 Mar 2024 09:29 AM
Thousands of New Zealanders are reported to be leaving the country each year for the supposed greener pastures in Australia. More favourable employment conditions and salaries are believed to be a driving force. According to 9News, Australians were typically at least $200 per week better paid. However, there’s more to the decision-making process than income alone. The housing market can also contribute.Auckland Median House Prices More Expensive Than Perth
If you’ve been considering hiring a home builder in Perth after living in New Zealand, it doesn’t hurt to compare average house prices. Despite Perth being an in-demand location for expats, the Auckland median house price is much higher than in Perth.
According to REINZ data, the Auckland median house price is now $1,050,000, and that’s after decreasing by 18% in 2023. In Perth, the median house price in January 2024 is $930,000, up 9.5% in the past 12 months.Housing is Generally More Affordable in Perth Based on Price-to-Income Ratios
While some Perth sub-regions are on par with Auckland regarding price-to-income ratios in housing affordability, Auckland homeowners are generally worse off. When a housing affordability report ranked 94 housing markets in eight countries, they identified Auckland as the seventh least affordable housing market in the world. Its median multiple of 10.8 meant that house prices were 10.8 times the median household income.
A Western Australia report found that the median price-to-income ratio in Perth ranged from 2.4 to 10.6. The lower price-to-income ratios in Perth have a flow-on effect on rental prices. They are, on average, 31.53% lower than in Auckland. The average rental property in Perth costs $575 compared to $750-$1,200 in Auckland.Housing Demand High in Perth and Auckland
Housing is statistically more affordable in Perth, but housing demand remains high in both places. A balanced Perth market is supposed to have an average of 13,500 house listings. However, those numbers dropped to below 5,000 in late 2023.
According to Auckland Council, Auckland’s housing supply has not kept pace with investment demand and population increases driven by natural population growth, migration, and urbanisation. However, high interest rates also meant the housing market was off to a slow start in 2024. Interest.co.nz reported that sales were at their second-lowest level nationwide in 32 years. Auckland, in particular, saw sales drop by 17.2% compared to January 2023.General Cost of Living More Affordable in Perth
The housing market is just one aspect to consider when New Zealand residents are considering a move to Perth, Australia, or vice versa. The cost of living also factors into the decision-making process. Workers in Perth earn an average net monthly salary after tax of $5,809.93 compared to Aucklanders' $4,433.29.
Consumer prices are also 5.13% lower in Perth than in Auckland, while groceries are an average of 1.16% higher in Perth. Even dining in restaurants is a typically more affordable experience in Perth, with menus averaging 15.23% cheaper than in Auckland.

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