For the majority of Australians, we live on the east coast and have not had much exposure to Perth other than hearing from time to time about mining. It is a distant land that many east coasters have not even been to. But is it a good market to invest in property?
Let’s dive into that today.
Yes. At the moment, Perth is an outstanding investment location. It is currently a real hotspot. It has everything going for it:
Affordability
Perth has been in the doldrums for a very long time. Since the peak in 2014 which was driven by strong mining expansion, Perth has not really done anything until 2020 when the city woke up again and started to move. The push was driven by a severe lack of supply and an increasing population due to increased mining activity. Now in 2024, it still remains affordable and has not yet hit its peak.
High rental yield
The severe lack of supply due to poor state government management means there are just not enough houses to go around. This lack of supply issue will not be fixed anytime soon as builders cannot bring product onto the market fast enough. Average yields are around 5% which is very compelling compared to Sydney or Melbourne at around 2% – 3%.
Fast growing values
This goes hand in hand with the high rental yield. Perth is the fastest growing market in Australia. Once again, the severe lack of supply and the ability to bring new housing to the market combined with strong population growth due to mining expansion means when the music stops – there are not enough chairs to go around. Prices will inevitably increase.
Before investing in Perth, I would strongly suggest that you get some advice. You need to know a few key things about the city including its unique development pattern. If you need any help, please contact me at the office.