Affordable Living, Strong Economy & Remote Work Attracting Newcomers To Perth
Perth is experiencing a remarkable influx of new residents with recent Australian Bureau of Statistics (ABS) data showing Western Australia had the fastest-growing population among all the states and territories in 2022, jumping 2.3% compared to the national average of 1.9%. But while Perth’s pulling power is undeniable, a local buyer’s agent warned the increased demand is contributing to the city’s housing supply shortage, pushing property prices and rents higher.
Peter Gavalas, buyer’s agent and director at Resolve Property Solutions, said Perth was increasingly an attractive place to live for many Australians due to the city’s relative affordability, strong economy and enviable 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, without many of the downsides such as inadequate infrastructure, long commutes and unaffordable housing,” he said.
Western Australia’s economy is contributing significantly to the city’s allure, with the 2023-34 state budget forecasting growth of 4.25%. With the unemployment rate close to a record low of 3.6% in June, skilled workers are in hot demand.
Then there’s the option to work remotely, which is opening up new opportunities for many Australians to call Perth their home.
“The appeal increases when you consider that housing affordability is a big problem in many of our capital cities. But it’s much easier to get on the property ladder here in Perth, with a median dwelling price that’s well within reach for most people,” he said. Perth’s median dwelling price in July was $598,074, compared to over $1.082 million for Sydney, according to CoreLogic.
The influx of new residents is boosting Perth’s property market, with Westpac recently forecasting annual price growth of 8.0% in 2023, followed by another 8.0% in 2024.
However, the heightened demand is contributing to supply problems in the sales market, with the number of properties listed for sale on reiwa.com falling to a thirteen year low in June.
“I’m getting lots of interest from interstate investors drawn to Perth’s strong fundamentals and attractive pricing, which is reflected in an increasing level of investor borrowing activity,” he said. Recent ABS data showed new investor loan commitments in WA jumped 7.3% in June from May.
Wannanup lead the charge for the top performing suburbs in July, experiencing 2.4% house price growth, bringing the median value of houses there to $599,000.
The field was all tied up for second place, with three suburbs realising 2% price increases for the month. Nedlands rose to $1,989,750, East Victoria Park to $755,000 and South Yunderup increased to $520,000.
Rounding out the top performers with another tie, Secret Harbour and Quinns Rocks both increased 1.7% to $559,500 and $615,000 respectively.
Sorrento, Duncraig and Safety Bay also performed well throughout July, all experiencing more than 1% growth.
Although part of the team was off enjoying a European summer for most of July, we still managed to secure 9 properties for our clients throughout the month, with 30% of these being either pre or off market. Here’s a small sample of the properties purchased during the month:
What’s Happening In The Perth Property Market?
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Resolve Property Solutions is an independent and qualified Buyer’s Agent specialising in Perth property. We will work hard for you to help you search, negotiate and secure your property goals at the best possible price.
Our story started with the passion for property and the research behind finding the right one.