Perth’s affordability and strong economy are luring many Australians into relocating to the city, resulting in a sustained pressure on its property and rental markets.
Western Australia achieved the second-highest population growth over the 2021-2022 financial year at 1.3%, according to the latest data from the Australian Bureau of Statistics.
The latest data also shows that around four of five of the state residents live in Greater Perth.
Resolve Property Solutions buyer’s agent Peter Gavalas said affordability played a huge factor in driving the demand for housing in the state and its capital despite defying the overall decline in the property market and reporting gains over the 2022 calendar year.
“Yet the city remains accessible to many first home buyers, with a median home value of $561,000 in December – about $450,000 less than Sydney,” he said.
Another reason for an active property market, particularly in Perth, is the highest median weekly salary — workers in the city earn the highest median weekly salary of all the state capitals at around $1,305 per week.
“You’re paying less on your home loan while earning a great wage, so you should have plenty left over to make the most of every lifestyle opportunity available – whether that’s enjoying the city’s thriving restaurant and entertainment scene or the state’s many natural wonders,” Mr Gavalas said.
Meanwhile, Western Australia’s unemployment rate is expected to average just around 3.5% in the 2022-2023 financial year, an indication of a strong job market.
All of these seem to contribute to the pressures in the state’s property market, particularly in the rental segment.
In fact, vacancy rates in Perth have dropped to a record low of 0.3%.
This led to a high level of rental growth over 2022 — 11.4% for houses and 10.4% for units.
Adding another pressure is the depleting supply of properties for sale — latest figures from SQM research showed a 7.4% drop in advertised sale in 2022.
“I’m not surprised that Perth was only one of two capital cities to see a fall in total listing volumes over the year. Properties are being snapped up quickly by both investors and relocators, particularly in the more affordable price brackets,” Mr Gavalas said.
“It’s likely these strong conditions will continue, with Perth values forecast to rise up to 5% this calendar year, driven by interstate migration.”
A recent report from REIWA showed the most popular suburbs in Perth potential relocators are considering. Wembley, Subiaco, and Mount Lawley are just some of the most searched suburbs.
Your Investment Property also recently published a guide for investors looking for the best hotspots for investments in Perth.
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Photo by Tourism Australia on Canva.
