Perth’s Property Market Booms: What’s Driving the Surge?

Perth’s housing market is currently experiencing a significant surge in demand, making it a favored spot for property investors across the nation. Experts and statistics indicate that the allure of Perth is not just a passing trend but a shift backed by substantial factors.

According to a recent article by Gerv Tacadena, Perth is expected to witness a rise in house prices and rents due to its increasing appeal to Australian buyers. The Australian Bureau of Statistics reports that Western Australia has seen the fastest population growth among all states and territories at 2.3%, surpassing the national average of 1.9%.

Peter Gavalas from Resolve Property Solutions attributes this appeal to three primary reasons: affordability, a robust economy, and an enticing lifestyle. “It’s no wonder people are flocking to Perth — it offers all the amenities and attractions of a major city, coupled with a fantastic lifestyle,” Gavalas remarks.

Adding weight to this observation, a separate report by Thierry Ng highlights the spike in property investment in Western Australia. MCG Quantity Surveyors’ data reveals a jump in property investment from just over 9% to a whopping 32% between Q1 2022 and Q1 2023.

MCG’s managing director, Mike Mortlock, points out a “seismic shift away from east coast property investment.” Furthermore, a recent survey by the Property Investment Professionals of Australia (PIPA) corroborates this trend, revealing that 25% of respondents chose Perth as their preferred investment location, making it the top pick among all capital cities.

Mortlock lists three crucial drivers for this shift towards WA: political climate, population growth, and affordability. He underscores the investor-friendly government policies in Western Australia compared to rigorous tenancy legislation in states like Queensland or Victoria.

Both articles emphasize the role of the state’s booming population. While thousands are moving away from NSW and Victoria, Western Australia has experienced a net migration surge, further tightening Perth’s already snug rental market.

With a current median dwelling price of $598,000 in Perth, compared to Sydney’s $1.08 million1, and a projected 4% to 7% growth in Perth’s median prices by the end of 2023, Perth indeed seems to be the place to watch for property investors.

It remains to be seen how the property market will unfold in other regions, but for now, the spotlight is firmly on Perth.

References:

“Perth’s appeal likely to drive up house prices, rents” by Gerv Tacadena. ↩ https://www.yourmortgage.com.au/mortgage-news/perth-appeal-driving-prices-and-rents

“Western Australian property market the top pick for property investors across the country” by Thierry Ng. ↩ https://thepropertytribune.com.au/opinion/western-australia-the-top-pick-for-property-investors-across-the-country/