Is buying a property in Perth CBD a good investment?

Last updated on December 20, 2023

Yes, the analysis of Perth's property market is included in our pack

If you've admired the modern skyscrapers and central location of Perth CBD, you might have considered making this vibrant Australian city your cosmopolitan and lively urban home.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Australia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Perth CBD?

Perth CBD, nestled in the heart of Perth, has emerged as a coveted location for property buyers, and there are several reasons why it stands out.

When considering real estate, it's essential to look at unique attributes that differentiate one area from another. Perth CBD, with its distinct blend of modern amenities and rich cultural heritage, offers a lifestyle that's both vibrant and convenient, a feature that's not as pronounced in other parts of Perth or in many other real estate markets.

One of the key attractions of Perth CBD is its robust infrastructure. Think about the convenience of having top-notch shopping centers, a variety of dining options, and cultural attractions like art galleries and theaters right at your doorstep.

This urban lifestyle, combined with the proximity to major business hubs, makes it particularly appealing to professionals. This is a stark contrast to suburban areas of Perth, where amenities might be more spread out and less diverse.

Perth CBD's popularity as a real estate hotspot didn't happen overnight. It has been a gradual process, influenced significantly by ongoing urban development and revitalization efforts. These efforts have continuously added value to the area, making it not just a great place to live but also a wise investment choice.

The sustained interest in Perth CBD suggests that this isn't just a passing trend. The continuous development and influx of businesses and cultural attractions are signs that the hype around Perth CBD is well-founded and likely to persist.

The demographic attracted to Perth CBD is as diverse as its offerings. It's particularly popular among young professionals and couples who appreciate the blend of work-life balance it provides.

Its appeal is also growing among downsizers who are drawn to the convenience and accessibility of city living. This shift is a reflection of the evolving preferences in the real estate market, where there's a growing appreciation for locations that offer both comfort and convenience.

However, every location has its drawbacks, and Perth CBD is no exception. For families, particularly those with young children, the bustling city environment might not be ideal. The lack of spacious backyards and the busy streets don't align well with the needs of a typical family-oriented lifestyle.

Additionally, the cost of living in the CBD is generally higher compared to suburban areas, which can be a significant consideration for many buyers.

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Why is Perth CBD a nice place to live?

Living in Perth CBD offers a unique and dynamic experience, combining the vibrancy of urban life with a laid-back Australian vibe.

The lifestyle here is characterized by an appealing blend of outdoor activities, cultural events, and a bustling café and dining scene. It's a place where modern urban living meets the relaxed Australian ethos.

The culture in Perth CBD is diverse and inclusive, marked by a rich array of cultural festivals, art galleries, and music venues.

There's always something happening, from live music in the city squares to art exhibitions at the Art Gallery of Western Australia. This cultural richness is a major draw for those who appreciate a lively and engaging urban environment.

The expat community in Perth CBD is thriving and well-integrated. People from all over the world call Perth home, contributing to its multicultural atmosphere. This makes it an inviting place for newcomers, as there's a sense of community and plenty of opportunities to connect with people from diverse backgrounds.

Living in Perth CBD does come with a higher price tag compared to some other areas in Perth. The cost of living here reflects the convenience and amenities it offers. However, many find that the benefits of living in such a central location justify the expense.

Safety is a key consideration, and Perth CBD is generally regarded as a safe area. Like any major city, it's always wise to be aware of your surroundings, but residents and visitors alike often comment on the secure and comfortable environment.

The amenities and facilities available in Perth CBD are top-notch. For healthcare, there are facilities like Royal Perth Hospital, providing excellent medical care.

Educational needs are well catered to with institutions such as Perth Modern School and Central Institute of Technology. For shopping enthusiasts, there are places like Murray Street and Hay Street Malls offering a variety of retail options.

The quality of infrastructure in Perth CBD is impressive. Roads are well-maintained, and there's a focus on sustainable and efficient public utilities. Internet connectivity is generally reliable and fast, catering well to both residents and businesses.

When it comes to accessibility, Perth CBD is well-connected to other parts of Perth and major transport hubs. The city is served by an efficient network of roads and public transport options, including buses and trains. The Perth Railway Station, for instance, is a central hub for train travel across the city and beyond.

Public transportation in Perth CBD is both convenient and user-friendly. The Transperth system offers extensive bus and train services, making it easy to navigate the city without a car.

Additionally, there are free CAT (Central Area Transit) buses that provide frequent service around the CBD, which is a boon for daily commuters and tourists alike.

Overall, living in Perth CBD offers a dynamic and comfortable urban experience, with a mix of cultural richness, excellent amenities, and a friendly community atmosphere. It's a place where the convenience of city living meets the relaxed, outdoor-oriented Australian lifestyle.

How much does it cost to buy real estate in Perth CBD?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Australia.

Buying property in Perth CBD, like any major city center, involves a range of options and price points, reflecting the diversity of the real estate market in this vibrant area.

In Perth CBD, you'll find a variety of residential property types, including apartments, penthouses, and to a lesser extent, townhouses. Each offers a different living experience catering to various lifestyles and preferences.

Apartments are the most common type of residential property in Perth CBD. This popularity is due to their convenience and suitability for the urban lifestyle that many residents and investors are seeking.

In contrast, houses and luxury villas are less common within the CBD, as the area is more focused on high-density living.

When we talk about what's in high demand, apartments, particularly those with modern amenities and close proximity to key attractions and business districts, are highly sought after. This demand is driven by professionals and investors who are attracted to the lifestyle and potential rental yields these properties offer.

In terms of market offerings, you'll find a mix of both new developments and resale properties. New developments are continuously adding to the skyline, offering modern amenities and often sustainable living options.

Meanwhile, resale properties provide opportunities for those looking for a piece of Perth's history or a more established community feel.

Price range is a crucial factor. In Perth CBD, property prices can vary widely, but generally, the price per square meter reflects the desirability of this central location.

You might find prices ranging significantly based on factors like property size, age, amenities, and views. It's not uncommon to see prices reaching high figures for luxury apartments with prime views and amenities.

Over recent years, property values in Perth CBD have seen fluctuations influenced by various economic and market factors.

However, the area has generally maintained a steady appeal, thanks to its continuous development and the allure of city living.

Looking ahead, there are always new developments and city planning changes on the horizon that can impact property values. Projects like new commercial developments, public transport improvements, or green spaces can all add to the appeal of living in the CBD, potentially driving up property values.

Predicting the future of the real estate market in Perth CBD involves considering factors like economic growth, population trends, and changes in lifestyle preferences.

An increase in demand for urban living, improvements in infrastructure, and the city's growing reputation as a business and cultural hub could all signal a potential increase in property values.

Key indicators to watch for potential increases in property value include ongoing development projects, changes in transport infrastructure, and shifts in population demographics.

If Perth continues to grow as a vibrant, well-connected city, with a focus on improving quality of life and amenities, the real estate market in Perth CBD is likely to reflect this positive trajectory.

Where is the best area to buy a property in Perth CBD?

Finding the best area to buy a property in Perth CBD depends on a variety of factors including personal preferences, lifestyle, and budget.

Perth CBD is diverse, with each part offering a unique atmosphere, property types, and price ranges.

Firstly, the atmosphere varies significantly within the CBD. Areas closer to Elizabeth Quay and the Swan River tend to have a more upscale, tranquil vibe, offering stunning river views and proximity to green spaces like Langley Park.

Here, you'll find a mix of luxury apartments and high-end commercial properties. Naturally, these attributes come with a higher price tag.

On the other hand, areas closer to Northbridge are known for their vibrant, cultural atmosphere. This part of the CBD is bustling with restaurants, bars, and entertainment options, making it a popular choice for those who enjoy a lively urban lifestyle.

Properties here are often more affordable compared to those near the riverfront, with a variety of apartments and smaller townhouses available.

In terms of up-and-coming areas within Perth CBD, areas around Yagan Square and East Perth are gaining popularity. These neighborhoods are undergoing significant development, bringing in new residential and commercial properties.

The appeal of these areas lies in their potential for growth and the opportunity to buy into a developing community.

For those looking to buy property in Perth CBD, areas like Kings Park and West Perth are worth considering. These areas offer a balance of city life and tranquility, with easy access to both natural green spaces and urban amenities.

Properties here range from modern apartments to more traditional townhouses, catering to a wide range of preferences.

Conversely, certain parts of Perth CBD may not be advisable for all buyers. Areas that are predominantly commercial, with fewer residential properties, may not offer the same sense of community or quietness that some buyers are looking for.

Additionally, areas undergoing major construction may face short-term disruptions, though these could become more desirable in the long term once development is complete.

Ultimately, the best area to buy property in Perth CBD will depend on what you are looking for in terms of lifestyle, property type, and budget. Each area has its own character and advantages, and it's important to consider how these align with your personal and financial goals.

Whether you're looking for the buzz of city life, the calmness of riverside living, or the potential of an emerging neighborhood, Perth CBD offers a diverse range of options to suit different tastes and needs.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Australia.

Area	Atmosphere	Property Types	Price Range	Notes
Elizabeth Quay & Swan River	Upscale, Tranquil	Luxury Apartments, Commercial Properties	High	Stunning river views, close to green spaces
Northbridge	Vibrant, Cultural	Apartments, Townhouses	Moderate	Bustling with restaurants, bars, entertainment
Yagan Square & East Perth	Developing, Potential Growth	Various Residential & Commercial	Varied	Undergoing significant development
Kings Park & West Perth	Balanced Urban Lifestyle	Modern Apartments, Townhouses	Varied	Close to nature and urban amenities
Commercial Dominant Areas	Commercial, Busy	Fewer Residential Properties	Varies	May lack a sense of community

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Is there a strong rental demand in Perth CBD?

Perth CBD, known for its vibrant urban lifestyle, has a robust rental market, appealing to a wide range of tenants.

The demand for rental properties in this area is influenced by several factors, including the type of rental, target demographic, and property characteristics.

Firstly, the rental demand in Perth CBD caters to both short-term and long-term rentals, but each has its distinct market. Short-term rentals are popular among tourists and business travelers, attracted by the convenience and attractions of the city center.

These rentals often come in the form of furnished apartments, located near key tourist spots and business districts.

On the other hand, long-term rentals are sought after by professionals, students, and young couples, who are drawn to the lifestyle and amenities the CBD offers.

The profile of potential tenants in Perth CBD is quite diverse. Professionals working in the city are a significant demographic, often looking for modern apartments that provide comfort and convenience close to their workplace.

Students, particularly those attending nearby universities, are also a key demographic. They tend to look for affordable, accessible housing options, preferably close to educational institutions and social hubs.

Young couples and expats add to the mix, often seeking quality living spaces that balance urban convenience with a touch of luxury.

Regarding property types, modern apartments, especially those with one or two bedrooms, are in high demand.

Tenants in Perth CBD typically look for properties that offer a blend of comfort, style, and convenience. Features like a well-equipped kitchen, a good view, or a balcony can be particularly appealing.

Specific areas within Perth CBD like Elizabeth Quay, West Perth, and near the Swan River are highly sought after due to their proximity to amenities and scenic views.

Properties in these areas often fetch higher rental rates and are attractive for potential tenants looking for a premium living experience.

Amenities play a crucial role in reducing vacancy rates. Properties that offer facilities like secure parking, a gym, a swimming pool, or proximity to public transport are more likely to attract and retain tenants.

Additionally, being near shopping centers, restaurants, and cultural attractions adds to the property's appeal.

In terms of potential returns on investment, properties in Perth CBD can offer attractive yields, particularly if they cater well to the market's demands. Rental yields can vary, but well-located, well-maintained properties in desirable parts of the CBD can offer competitive returns.

It's important to factor in ongoing costs, such as maintenance, management fees, and possible vacancy periods when calculating potential returns.

Looking at the trends, properties that cater to a growing demand for sustainable and smart living are gaining traction.

Apartments that incorporate energy-efficient features, smart home technology, or innovative design elements are becoming more popular and could potentially offer better yields in the future.

As the rental market continues to evolve, keeping an eye on these trends will be key to making informed investment decisions in Perth CBD's dynamic property market.

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Is it easy to buy a property as foreigner in Perth CBD?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Australia.

Buying property in Perth CBD as a foreigner is possible, but it's essential to be aware of specific regulations, the purchasing process, and potential risks.

Australia, including Perth, has certain rules and procedures that foreign buyers need to navigate.

Firstly, foreign investment in Australian real estate is regulated by the Foreign Investment Review Board (FIRB). As a foreigner, you're required to obtain FIRB approval before purchasing property in Perth CBD. This process involves an application fee and a review to ensure the investment aligns with Australian property laws.

FIRB typically allows foreigners to purchase new properties or vacant land for development but buying established (resale) homes is often restricted.

The purchasing process in Perth CBD is structured and involves several steps. Once you find a property you're interested in, you would typically make an offer through a real estate agent.

Upon acceptance of the offer, a contract of sale is drawn up. It's crucial to have a conveyancer or a legal professional review this contract before signing.

After signing, there is a cooling-off period (though this can vary), and then the settlement process begins, which can take several weeks to a few months.

There are primary risks associated with property investment in Perth CBD that you should be aware of. Market fluctuations can affect property values, so there's a risk of capital loss if the market dips after your purchase.

Additionally, being a foreigner, there might be complexities related to tax implications, especially capital gains tax and land tax, which can affect the overall profitability of your investment.

A classic pitfall for foreigners buying property in Australia is underestimating the additional costs involved, such as stamp duty, legal fees, and FIRB application fees.

Another unique aspect is the Australian law regarding underquoting - where agents provide a lower than realistic expected selling price. It's crucial to research and understand the true market value of properties to avoid overpaying.

Working with a local real estate agent and a lawyer is highly advisable. A local agent can provide valuable insights into the Perth CBD property market, help navigate local regulations, and assist in finding properties that meet FIRB criteria.

A lawyer or conveyancer can ensure all legal aspects of the property transaction are handled correctly, which is crucial for compliance with Australian property law.

Common exit strategies for property investors in Perth CBD include selling the property for capital gain or holding the property and generating rental income. Some investors also consider developing the property to add value before selling.