Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Perth's property market is included in our pack
Why is Perth emerging as a prime destination for property investment in 2025? Is it the robust rental returns, the thriving local economy, or the relative affordability compared to other Australian cities? What are the key benefits for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Perth's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) In Perth, you’ll find strong rental yields that attract investors looking for steady income
Perth's rental yields are among the highest in Australia, making it a hotspot for investors seeking steady income.
In 2023 and 2024, units in Perth offered a median yield of 6.6%, which is significantly higher than Melbourne's 3.40%. This makes Perth an attractive option for those looking to maximize their returns. Suburbs like Bayswater and Sorrento are particularly appealing, with Bayswater boasting a remarkable 9.6% yield in FY23. This is largely due to the area's strong rental demand and relatively affordable property prices.
Investors are drawn to Perth not just for the high yields but also for the consistent growth in the rental market. Over the 12 months leading to September 2024, the median rent price for houses in Perth increased by 12.6%. This growth indicates a robust rental market that continues to attract attention.
Local insights reveal that Perth's rental market benefits from a combination of factors. The city's economic stability and ongoing infrastructure projects contribute to a steady influx of tenants, further boosting rental demand. Additionally, Perth's lifestyle appeal, with its beautiful beaches and vibrant cultural scene, makes it a desirable place to live, adding to the rental market's strength.
For investors, Perth offers a unique opportunity to tap into a market with both high yields and growth potential. The city's rental market is not just about numbers; it's about understanding the local dynamics that drive demand. With a strong economy and a growing population, Perth is well-positioned to continue delivering attractive returns for property investors.
Sources: Here Property, Smart Property Investment, Savings.com.au
2) Perth’s close ties to Asia make it a prime spot for business, increasing property demand
Perth's closeness to Asia makes it a key spot for international business and trade.
In 2023, Australia's exports to Asia, especially China, saw a huge boost of $33,613 million. This growth is likely to keep going strong, as the World Trade Organization predicts that Asia will lead in export and import growth by 2025.
The Australian government is also working hard to build stronger connections with Southeast Asia, putting AU$505 million into new initiatives. This includes setting up regional offices in Perth, making the city a gateway for Asian businesses looking to enter Australia.
Foreign direct investment from Asian countries into Western Australia is on the rise, highlighting Perth's growing importance. The government's Southeast Asia Economic Strategy to 2040, which involves AU$2 billion in investment financing, is backing this trend, especially in infrastructure and renewable energy sectors.
Perth's strategic location and business-friendly environment are attracting more Asian companies, further boosting the property market. This influx of international business is making Perth a hotspot for property investment, with many seeing it as a smart move for the future.
Sources: Australian Bureau of Statistics, ASEAN Briefing, Here Property
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Urban renewal in the city is boosting property values in older neighborhoods
The city's urban renewal projects are transforming older neighborhoods, making them more appealing and valuable.
Since 2023, initiatives like the Perth City Deal have injected life into areas such as the East Perth Power Station and the Perth Concert Hall. These projects have not only improved the aesthetics but have also boosted property values significantly, attracting both residents and businesses.
One standout project is the East Perth Power Station's $218 million makeover. It's turning the area into a lively hub with residential, commercial, and recreational spaces. This transformation enhances the neighborhood's livability, making it a hot spot for potential buyers and investors.
The government's dedication is clear with the $1.75 billion Perth City Deal, which aims to reshape the city. These efforts are expected to positively impact property values, as seen with the surge in housing demand. Between July and September 2024, there were 508 dwelling approvals, highlighting the success of these projects.
These urban renewal efforts are not just about buildings; they're about creating vibrant communities. The increased demand for housing in these areas is a testament to their growing appeal. Revitalized neighborhoods are becoming the go-to choice for those looking to invest in property.
Sources: Infrastructure Australia, City of Perth News
4) With the healthcare sector growing, there’s more demand for homes near medical centers
The city's booming healthcare sector is driving up the demand for housing near medical facilities.
With the number of healthcare facilities in Perth on the rise, including major projects like the Peel Health Campus redevelopment, more healthcare workers and patients need to live close by. This expansion is not just about adding beds and services; it's about creating a community around these centers.
The government is pouring money into healthcare infrastructure, like the $152 million investment in the Peel Health Campus. This isn't just about better healthcare; it's about attracting healthcare professionals who want the convenience of living nearby. They prefer to cut down on commute times and be part of a vibrant, health-focused community.
Perth's population is getting older, with a 20% increase in residents aged 65 and over in the last decade. This shift means more medical services are needed, which in turn boosts the demand for housing near healthcare centers. People want to be close to where they can get the care they need.
Real estate trends are clear: properties near hospitals and clinics are hot commodities. They offer easy access to essential services, making them highly desirable for both healthcare workers and patients. This trend is reshaping the housing market in Perth.
As the healthcare sector grows, so does the need for housing that supports this expansion. Living near medical facilities is becoming a priority for many, whether for work or health reasons. The city's development is closely tied to its healthcare advancements.
Sources: Perth Now, Hellenic Aged Care, Altarum
5) In this city, you’ll find more space and larger properties than in other capitals
Perth offers more space and larger properties compared to other Australian capitals.
With a population density of 295.5 people per square kilometer, Perth feels less crowded than cities like Melbourne, which has 521 people per square kilometer. This means you can enjoy more breathing room and privacy.
In Perth, the median land area for houses is 569 square meters, giving you more space than you'd find in Melbourne or Adelaide. This is similar to Sydney, but with a more relaxed vibe.
Urban planning in Perth, guided by the Residential Design Codes, encourages larger residential lots. These policies are especially beneficial outside high-density areas, making it easier to find a spacious home.
Perth's planning approach means you can often find properties with bigger yards and more outdoor space, perfect for families or anyone who loves gardening.
So, if you're looking for a place with room to grow, Perth's property market might just be the perfect fit for you.
Sources: Property Council, Planning WA, Real Estate News
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6) Perth’s nearby wine regions draw wine tourists, boosting hospitality investment opportunities
Perth's wine regions are drawing in wine tourists and hospitality investments like never before.
Take the Swan Valley, for instance. It's not just about wine tastings; you can explore distilled liquors, breweries, and artisan products. This variety is a big reason why more and more visitors are flocking to the area.
With this influx of tourists, there's been a noticeable increase in hospitality investments. New wineries, restaurants, and accommodations are popping up, especially in places like Margaret River and Pemberton. These developments are a clear sign of ongoing investment in the industry.
Western Australia's wine tourism revenue is on the rise, and it's not just a small bump. The state's total winegrape crush is expected to grow by 19.7% over the next five years. This kind of growth is a green light for more hospitality ventures.
In the past five years, the value of grape production has almost tripled, which is a testament to the economic boom in the wine industry. This surge is encouraging more people to invest in the region's hospitality sector.
Sources: ABS, Perth Metro RTDS
7) Perth’s closeness to Rottnest Island increases demand for tourism-related properties
Perth's closeness to Rottnest Island is a big draw for tourists and boosts property demand.
In the 2023-24 financial year, Rottnest Island saw 823,441 visitors arriving by ferry, marking its highest visitation ever. This surge shows how much people love this spot, making it a hot destination for tourists.
With so many visitors, there's a noticeable uptick in demand for short-term rentals in Perth. Typically, a short-term rental here is booked for 307 nights a year, with a solid occupancy rate of 84% and an average daily rate of AU$170. This trend indicates that tourists are keen to stay close to natural attractions like Rottnest Island.
The Airbnb scene in Perth is thriving, with hosts seeing a significant boost in earnings. In 2023, a typical host made AU$50K annually, thanks to high occupancy and daily rates. This underscores how tourism is driving property demand.
For those considering buying property in Perth, these numbers are promising. The steady flow of tourists looking for places to stay near attractions like Rottnest Island means consistent rental income potential.
Investing in Perth's property market could be a smart move, especially with the ongoing popularity of nearby natural attractions. The tourism-driven demand for short-term rentals is a key factor to consider.
Sources: Rottnest Island Authority Annual Report 2023-24, Airbtics
9) Perth’s time zone is ideal for businesses with Asia and Europe, drawing in international professionals
Perth's unique time zone is a major advantage for businesses aiming to connect with both Asia and Europe.
With 60% of the world's population sharing Perth's time zone, companies find it easier to collaborate and expand across these regions. This strategic edge has attracted over 100 resource and energy giants, including ExxonMobil, Shell, and BP, to establish offices in the city.
Perth's excellent flight connections further enhance its appeal. The city offers non-stop flights to major cities like London, Paris, and Tokyo, making business travel convenient and helping maintain strong international ties. The multicultural vibe, with many residents born overseas, indicates that international professionals are choosing Perth as their home and workplace.
The city's economy has been on a steady rise, with an average growth rate of 3.1% per year over the past decade. This growth is fueled by its strategic position for international trade, bolstered by government initiatives promoting Perth as a business hub for Asia-Europe trade.
The demand for commercial properties in Perth is climbing, reflecting its growing allure as a business destination. Companies are drawn to the city's strategic advantages, making it a hotspot for international business operations.
Sources: Flight Connections, UWA Course Guide, Into Study Blog
10) With better public transport, suburban living in the city is more appealing
The city's public transport upgrades have made suburban living more appealing by boosting connectivity and accessibility.
Thanks to the Western Australian government's investment in METRONET, 72 kilometers of new rail and 23 new stations are being built. This expansion offers more transport choices and housing options, making it easier for people to live in suburbs while still having convenient access to the city.
New train lines like the Yanchep Rail Extension and the upcoming Morley-Ellenbrook Line have improved connectivity to previously underserved suburbs. These areas are now more attractive to potential residents, and public transport ridership is on the rise. Transperth recorded almost 10.51 million total boardings in January 2024, showing a growing preference for public transport.
METRONET also aims to reduce traffic congestion and improve road safety by removing level crossings and building new stations. This not only enhances connectivity between suburbs and the city center but also makes commuting more efficient and reliable.
The increased frequency and reliability of public transport services, like trains running every 7.5 minutes during the day, add to the appeal of suburban living. Residents can enjoy the benefits of suburban life without sacrificing easy access to the city.
Sources: Transperth, WAMN News, Our State Budget
11) With heavy infrastructure investment, property values in Perth are on the rise
The local government is pouring money into infrastructure, and it's boosting property values.
With a hefty $3.1 billion earmarked for the METRONET program in the 2023-24 State Budget, the city is seeing a major public transport overhaul. This isn't just about new trains; it's about making the city more connected and accessible, which naturally makes properties more appealing.
Looking ahead, the 2025-27 budget plans to pump $13.6 billion into road, rail, and transport infrastructure over four years. These aren't just figures; they're the backbone of projects that will transform how people move around the city, making it a more attractive place to live and invest.
Take the Yanchep Rail Extension and the Morley-Ellenbrook Line, for example. These are not just lines on a map; they're game-changers for accessibility. These projects will open up key areas, making them hot spots for homebuyers and investors alike.
Imagine living in a place where getting around is a breeze. That's what these infrastructure projects promise. Improved connectivity means more desirable neighborhoods, and that translates to rising property values.
So, if you're thinking about buying property, consider how these developments might impact your decision. Investing in areas with improved infrastructure could be a smart move, as these projects are set to enhance the city's overall appeal.
Sources: State Infrastructure Programme, Public Transport Authority Annual Report 2023-24, Our State Budget 2023-24
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12) Perth’s warm Mediterranean climate is perfect if you’re a retiree or expat looking for a sunny lifestyle
Perth's Mediterranean climate is a magnet for retirees and expatriates craving warmth.
In the past year, Perth's population grew by 3.6%, thanks to retirees and international newcomers. This surge underscores the city's allure, with its sunny weather and stunning beaches drawing people in.
Between 2023 and 2024, nearly 60,000 international arrivals chose Perth, highlighting its global appeal. The real estate market mirrors this trend, with suburbs like Alkimos and Eglinton seeing a boom as Australians flock to the warmth.
Perth enjoys a consistently warm climate, with temperatures ranging from 14 °C to 24 °C. It boasts 3695 hours of sunshine annually, making it Australia's sunniest capital city, a key attraction for those seeking a sunny lifestyle.
Retirees and expatriates are particularly drawn to Perth's climate, which offers a perfect blend of warmth and sunshine. The city's Mediterranean vibe is a major selling point, enticing those looking for a relaxed, sun-drenched lifestyle.
With its appealing climate and growing population, Perth is becoming a top choice for those seeking a change. The city's charm lies in its ability to offer both a vibrant urban life and a peaceful retreat, all under the sun.
Sources: Nomad Season, The West Australian, Tripplo
14) Top universities in the area mean students and academics are always looking for places to stay
In Perth, top universities like Curtin University are a magnet for students and academic professionals.
With 43,655 students enrolled at Curtin University in 2023, the demand for housing is substantial. This influx of students, both local and international, means there's a constant need for accommodation options close to campus.
Perth is also a hotspot for international students, with 37,981 international students in Western Australia in 2022. These students prioritize finding safe and convenient housing near their universities, which further fuels the demand for student accommodations.
The student accommodation market is booming, with a valuation of USD 11.34 billion in 2023. This growth reflects the increasing need for quality housing options for students from around the world.
Properties near Perth's universities often boast higher rental yields. This is partly due to the significant spending by international students, which boosts the local economy and supports numerous jobs.
In fact, international student spending in Perth supports 11,935 jobs and generates $2.1 billion annually, highlighting the economic impact of this demographic on the city.
Sources: Curtin University Student Statistics (2023), Erudera International Student Statistics (2022), Grand View Research Student Accommodation Market Report (2023), City of Perth Education Sector (2023)
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
16) Sports fans love the city because of its strong sports culture and major league teams
Perth is a paradise for sports lovers, thanks to its thriving sports culture.
Take the Perth Stadium, for example. Since it opened in 2018, it has been a real game-changer, pulling in thousands of new visitors each year. This isn't just about filling seats; it's about boosting the local economy and showing off Perth's knack for hosting big events. People from all over flock to the city, eager to be part of the action.
Then there's the West Coast Eagles, a local sports club with a fan base that's nothing short of passionate. With over 103,000 members as of 2023, the Eagles are a testament to the city's deep-rooted love for sports. This enthusiasm spills over into the economy, with sports tourism generating millions and creating jobs.
Perth's commitment to sports doesn't stop there. The city is investing heavily in sports infrastructure, like the redevelopment of the WACA Ground. These upgrades aren't just for show; they enhance facilities for athletes and fans alike, drawing even more sports enthusiasts to the city.
Sports academies and training centers, such as those linked with Basketball Australia, play a crucial role too. They nurture young talent and foster a love for sports, ensuring that Perth's sports culture continues to thrive.
All these elements come together to make Perth a sports hub, where the local passion for sports is palpable and infectious.
Sources: Tourism Council WA, VenuesWest, Basketball Australia, Wikipedia
18) Perth is a great choice for families because of its low crime rates
Perth is a great place for families because of its low crime rates.
In 2023, the likelihood of encountering violent crime in Perth was much lower than both state and national averages. This means families can enjoy a more secure daily life. Imagine walking through the city or letting your kids play outside without constant worry.
Property crime is also less of a concern here. Perth's property crime rates were below the state and national averages, adding to the city's appeal for families seeking a stable environment. With a crime index of 41.81, compared to Melbourne's 43.83, Perth stands out as a safer choice.
Residents generally feel safe, with low concerns about being mugged or car theft. This sense of security is crucial for families who want peace of mind. Neighborhoods like Subiaco, Mount Lawley, and Fremantle are not just safe but also offer family-friendly amenities and top-notch schools.
These areas are known for their vibrant communities and excellent educational facilities, making them perfect for raising children. Subiaco, for instance, is famous for its parks and community events, while Mount Lawley offers a mix of culture and convenience.
Fremantle, with its rich history and coastal charm, provides a unique living experience. Families here enjoy a blend of safety and lifestyle, making Perth an attractive option for those looking to settle down.
Sources: Red Suburbs, Numbeo, Stage Property
19) Perth’s lively arts scene makes it a top choice for creative professionals
Perth's arts and culture scene is a major draw for creative professionals looking to relocate.
The city boasts a variety of art galleries and cultural institutions, like the Art Gallery of Western Australia and the Perth Institute of Contemporary Arts (PICA). These venues are not just about art; they are vibrant spaces where indigenous and contemporary art come alive, attracting thousands of visitors weekly.
Perth is also buzzing with arts and cultural events, including the famous Perth International Arts Festival. These events are more than just entertainment; they are a magnet for visitors from all over, enhancing Perth's reputation as a cultural hub and drawing in creative minds eager to both create and experience art.
The government is backing this cultural boom with significant investments, like the $55 million rejuvenation project for the Perth Cultural Centre. This initiative is set to transform the area into a more connected and welcoming space, making the city's cultural precincts even more appealing to creative professionals.
New cultural hubs, such as the Perth Cultural Hub and the Fremantle Art Space, are popping up, offering platforms for emerging artists to showcase their talents and collaborate. These spaces are not just about art; they are about community and creative collaboration.
Sources: Minister for Infrastructure, Luxury Lifestyle Magazine, Drift Travel
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.