Despite the ongoing disruptions affecting property markets across Australia, one state has stood out against the rest. Perth is still delivering strong sales activity and price growth with investors rushing to capitalise on the opportunity for high returns.
So what are the main factors contributing to such resilience in Western Australian markets?
Despite experiencing growth, the city remains one of the most affordable in Australia, with a median value of $580,000 in May, as reported by CoreLogic. This affordability has attracted both first-home buyers and investors, creating a competitive environment in the city’s property market. Furthermore, Perth’s strong rental market is driving increased interest from investors, with vacancy rates at a low 0.6% in May and annual rental growth of 18.9%.
CoreLogic’s home value index shows Perth’s dwelling values rose 1.3 percent in May and 2.4 percent in the past three months.
Population growth and migration have further contributed to Perth’s appeal as an investment location. ABS Statistics indicate that in the last year Greater Perth grew by 32,200 people (1.5%), and the rest of the state by 5,800 (1.0%).
The city’s enviable lifestyle, employment opportunities and strong economy have drawn individuals and families from across the country and abroad. This population influx directly translates into a rising demand for housing, creating a favourable climate for property investment. As the population continues to grow, the rental market is expected to flourish, offering attractive rental yields for investors.
Infrastructure development is another key driver of Perth’s property market growth. The city is currently undergoing significant infrastructure projects, with Western Australia’s budget expenditure increasing 10.4% to $33.9bn for the next four years.
Metronet, a 72km passenger rail line with 23 new stations, along with a number of university campuses and hospitals currently under development, will significantly increase the city’s economy.
AREAS TIPPED FOR GROWTH IN WESTERN AUSTRALIA
With our wealth of knowledge and research network behind us, we have identified two areas in Western Australia that we believe have the potential to experience significant growth throughout the remainder of the year and into the next.
Wanneroo, Western Australia’s fastest-growing local government area, is poised for continued expansion. With a young, lifestyle-focused population and diverse employment opportunities, the region is attracting attention. State government projects and contributions from developers like Stockland, Lendlease, and PEET Limited will bring new jobs, amenities, and improved infrastructure. Alongside pristine beaches, restaurants, and ample parkland, Wanneroo offers an unmatched lifestyle. The population is expected to reach 370,273 by 2041, requiring an estimated 59,273 additional homes to meet the forecasted growth.
The Rockingham City region currently boasts a population of 140,595 residents, and its future holds incredible potential for growth. By 2046, it is projected to experience a remarkable increase of 71.29%, reaching a population of 239,147. What makes Rockingham City particularly appealing is its combination of affordable housing, well-developed infrastructure, and a range of amenities. The area offers an enviable lifestyle with its beachside dining options and picturesque parks precincts. Additionally, Rockingham City benefits from strong economic foundations, thanks to its proximity to large employment precincts. Within this region, the suburb of Baldivis has consistently ranked among the top two positions for first-home-buyer grants over the past decade, highlighting its suitability for young families seeking both a desirable lifestyle and convenient living. As one of Perth’s most strategic metropolitan centres, the City is gearing up for this rapid growth, with an estimated need for approximately 50,000 new homes by 2046.
Find out more about these locations in our ‘12 Property Hotspots Set To Skyrocket‘ eBook!
If you’re interested to learn more about the property market in Western Australia, simply fill out the form below to secure a no-obligation strategy session with one of our esteemed Senior Property Wealth Planners valued at $495 for FREE!