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Perth is poised to see house prices and rents rise over the next few months as it continues to attract many Australian buyers and renters who are priced out in other more expensive capital cities.
According to the Australian Bureau of Statistics, Western Australia had the fastest-growing population among all states and territories, hitting a growth of 2.3% versus the national average of 1.9%.
Resolve Property Solutions buyer’s agent Peter Gavalas said there are three main factors that makes Perth an attractive place to live for many Australians: affordability, economy, and 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 2023-24 state Budget forecast an economic growth of 4.25%. Currently, skilled workers are in hot demand in the state, with its unemployment rate hovering at a record low of 3.6% in June.
Mr Gavalas said the appeal increases considering how affordable it is in Perth compared to many of other 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.
According to CoreLogic, Perth’s median dwelling price in July was $598,000, compared to $1.08m for Sydney.
Market forecasts are pegging Perth to likely be one of the big performers by the end of the year.
PropTrack, for instance, is seeing a 4% to 7% growth in Perth’s median prices by the end of 2023.
This heightened demand for properties in Perth and Western Australia is coming at a time when supply is low — in fact, data from the Real Estate Institute of Western Australia showed that listings were at a 13-year low in June.
The supply crunch is also affecting the rental market as well — in June, the city’s vacancy rate is at 0.6%.
Mr Gavalas said an increase in investor activity should see the Perth’s rental market get some relief.
“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.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $2,408 | Principal & Interest | Variable | $0 | $530 | 70% | Featured Online ExclusiveUp to $4k cashback |
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5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% |
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6.14% p.a. | 6.16% p.a. | $2,434 | Principal & Interest | Variable | $0 | $250 | 60% |
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5.95% p.a. | 5.95% p.a. | $2,385 | Principal & Interest | Variable | $0 | $0 | 90% | |||||||||||
5.94% p.a. | 5.95% p.a. | $2,383 | Principal & Interest | Variable | $0 | $0 | 90% |
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Photo by Adon Buckley Photography on Canva.
Collections: Mortgage News Property News Buying a home
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