Western Australia has caught the eye of buyers from out of state and overseas. The state has seen a large increase in migration and this is projected to continue.
According to the Centre for Population, WA’s population is expected to grow at 1.3% annually over the next five years.
What are the benefits of buying in WA?
It’s the state’s affordability compared to other states that’s drawing interstate buyers, according to the Real Estate Institute of WA (REIWA).
Despite an increase in home prices in 2023, Perth remained more affordable than other capital cities. Over 2023, property prices in Perth rose 15.45% according to PropTrack. But they remain at a median value of $640,000 with only Darwin showing a lower number. This value for money makes the property market in Perth appealing for buyers.
Another benefit of buying in Perth is the value it offers investors. The rental market is strong, producing good rental income and high occupancy rates.
Rental rates have increased for nine consecutive quarters, according to Domain. In December average rent for houses in Perth was $620 a week and $520 for units.
In January 2024, there was a 0.4% rental vacancy rate in Perth, according to Domain. Only Adelaide has a more competitive rental market at the moment.
The economy is another reason people are flocking to Perth. The gross state product (GSP) grew 3.5% in the 2022-23 financial year and makes up 17.4% of the national economy.
Buying property interstate in Perth
Buying property in Western Australia can be slightly different to other parts of the country.
First, you have the option of taking advantage of Western Australian-specific grants and concessions. These include:
- Building Bonus grant for new detached homes or single-tier developments
- Off-the-plan duty rebate scheme for apartments in a multi-tier development
These are in addition to homeownership schemes run by the federal government such as the first home owner grant.
Second, in Western Australia, properties are bought on an offer and acceptance method. This means there is no cooling-off period once your offer has been accepted and you are committed to go through with the transaction.
Knowing what to look for when buying interstate
Buying a property in a different city from your home can come with the challenge of not knowing the market. This means potentially missing out on some of the benefits of buying in Perth. It can be a good idea to work with a qualified and experienced buyer’s agent who is familiar with the location so they can offer you the best advice for your situation.
Your buyer’s agent should be able to talk you through the local nuances of buying in Perth.
Looking to buy a property in Perth from another state? As an expert Perth buyer’s agent, Resolve Property Solutions can help. To discuss your options, book a free strategy call with Peter Gavalas.
