Western Australia’s Property Market Proving a Boon for Affordable Housing Options and Investment Opportunities

Despite nationwide economic pressures and rising interest rates, Western Australia’s property market offers some of the best conditions in the country, with opportunities for homebuyers and investors alike. The current housing landscape is robust, and the opportunities available in Western Australia, particularly in Perth, have created a dynamic market that is enticing to both local and out-of-state investors.

As property reporter, Lucas Meyer, notes, Western Australia, while not exempt from the prevailing cost pressures, provides more attainable housing options compared to other regions such as New South Wales. “The latest SQM Research weekly asking property prices for Perth houses are $845,747, and units are $442,580. Sydney’s house prices are close to $1.8 million, while units are just above $780,000,” writes Meyer, thereby emphasizing the affordability of housing in Perth. This contrast in pricing has led to a surge in interest from buyers seeking to maximize their investments or find affordable living options.

Echoing Meyer’s analysis, fellow property reporter, Kylie Dullhunty, adds that the Hotspotting Price Predictor Index for Winter 2023 identifies Perth as the busiest and most buoyant property market, with 71% of suburbs recording strong levels of sales activity. “Western Australia, South Australia, and Tasmania – headed by their capital cities Perth, Adelaide, and Hobart – are the jurisdictions with the strongest market pulses,” according to Hotspotting Director Terry Ryder.

The affordability and relative accessibility of the Perth property market are evident, particularly in the City of Gosnells. According to Hotspotting General Manager Tim Graham, Gosnells has been named this quarter’s National Growth Star in the index. “Most of these locations have median house prices in the $300,000s and $400,000s, providing a level of affordability that Melbourne and Sydney residents can only dream about – and it’s attracting investors from the eastern states in large numbers, too”.

Additionally, the investment potential in Perth is highlighted through examples of recent transactions. One such instance is the three-bedroom, two-bathroom unit at 24/134 Mounts Bay Road, which sold in mid-March for $715,000. HTW Director Chris Hinchliffe estimates that this property could generate a rental of $700 per week.

Despite the advantages of investing in Perth, potential buyers must remain aware of the fluctuations in the property market. Meyer warns that while some historic changes provide a glimmer of hope, the weekly asking property prices have swung between $695,597 (October 2021) and $988,924 (September 2022).

In conclusion, both Meyer and Dullhunty suggest that the Western Australian property market provides an attractive option for potential homebuyers and investors. While challenges are present, the Perth property market stands out as a beacon of affordability and stability in a generally uncertain Australian housing landscape.

References:

Meyer, Lucas. “The Western Australian housing markets offering best bang for buck at $750K.” https://thepropertytribune.com.au/market-insights/the-western-australian-housing-markets-offering-best-bang-for-buck-at-750k/ 

Dullhunty, Kylie. “Western Australia has the best property market conditions.” https://eliteagent.com/western-australia-has-the-best-property-market-conditions/