Perth Property Investment

The Perth property market remains significantly affordable in comparison to the eastern markets. The affordability index indicates, that there is still plenty of growth left in the market. 

Western Australia has been the fastest growing state in the country for both overseas and interstate migration. 

Over the last 12 months, the Western Australia population increased by 3.3%, the highest increase in the country, totalling to a population on 2.9 million. 

The dynamic between supply and demand is arguably one of the strongest factor driving prices in the market. With strong population growth and increasing demand, the current modelling in Perth cannot accomodate the increase.

Stock levels are at record low levels trading on average below 4,000 properties per month, in 2024. 

Government forecast predict that WA will require 92,000 homes built by 2027. The current trajectory of building approvals suggest that the state will produce 67,000 properties in the period. Resulting in a shortfall on 25,000 properties. 

The lack of supply and high demand has also resulted in a record low vacancy rate of 0.4% with properties staying on market for an average of 7 days.

Historically speaking, when demand exceeds supply and there is a level of affordability within the market, prices tend to rise. 

The potential of interest rate cuts may provide more confidence in the market. 

It’s important to be careful when navigating the current market conditions:

• Suburb and asset selection is key to making the most out of your investment. 
• Navigating property prices can be difficult in a rising market. 
• It’s important to do a thorough due diligence through each property