As we step into 2024, property investment in Perth continues to attract attention from seasoned investors and first-time buyers alike. With Perth’s property market showing steady growth, favorable rental yields, and significant infrastructure developments, many are asking: Is investing in Perth real estate still a good idea? This article dives into market updates, forecasts, and expert opinions to help you decide whether Perth remains a strong contender for your next real estate investment.
Current Market Updates for Perth’s Property Scene
In recent years, property investment in Perth has been shaped by a combination of affordable prices and increasing demand. Unlike Sydney and Melbourne, where housing affordability has become a significant barrier, Perth offers investors a more accessible entry point into the property market.
Affordability and Growth Potential
Perth's median property price remains lower compared to the eastern capitals, making it an attractive option for investors looking to maximize their return on investment. CoreLogic data from late 2023 highlights a year-on-year price increase of 6-8%, reflecting growing confidence in the market.
Rental Market Strength
Perth’s rental market remains one of the strongest in Australia, with vacancy rates hovering below 1%. This tight rental supply has driven rental yields upwards, making it a lucrative option for any property investor in Perth seeking positive cash flow. According to REIWA, median rents in Perth have climbed steadily, driven by strong tenant demand and a limited supply of rental properties.
Population Growth and Migration Trends
Western Australia’s steady population growth continues to fuel housing demand. In particular, interstate migration to Perth has increased due to lifestyle preferences, employment opportunities, and affordability. As more people move to Perth, demand for housing will likely remain high, benefiting investors.
Forecasts: What Lies Ahead for Perth’s Property Market?
Looking into 2024, experts forecast continued growth for Perth’s property market, albeit at a moderate pace. Key indicators that point toward sustained opportunities for property investment in Perth include:
• Infrastructure Developments
Major projects such as METRONET, the expansion of key transport lines, and ongoing urban development initiatives are set to improve accessibility and boost the appeal of emerging suburbs. Areas benefiting from these projects will likely see significant property value appreciation.
• Interest Rates and Affordability
While rising interest rates have affected property markets nationwide, Perth’s affordability has cushioned this impact. Investors in Perth can still access properties with strong growth potential at a lower initial cost compared to other major Australian cities.
• Strong Rental Yields
The rental market in Perth is expected to remain competitive, with high yields continuing to attract investors. According to Domain, Perth boasts some of the highest rental yields in the country, particularly in suburbs close to the CBD and coastal areas.
• Resource Sector Growth
Western Australia’s resource sector continues to drive economic growth, bringing jobs and investment into Perth. This economic stability reinforces demand for housing, particularly in areas close to employment hubs.
Expert Opinions: What the Professionals Say
Real estate experts remain optimistic about Perth’s property market in 2024. According to Damian Collins, past President of REIWA, the combination of affordable property prices and high rental demand makes Perth a standout market for investors.
"Perth’s property market is positioned for steady growth. With strong rental yields and population growth, it’s an excellent time for investors to consider Perth," Collins states.
Similarly, data from CoreLogic and PropTrack suggests that Perth’s relative affordability will continue to attract local and interstate investors. Experts recommend focusing on suburbs with planned infrastructure developments or areas undergoing gentrification for the best investment returns.
Why Perth is Still a Smart Choice for Property Investors
For any property investor in Perth, the benefits extend beyond affordability. The following factors make Perth a compelling option for real estate investment:
- Positive Cash Flow: Strong rental yields mean that investors can generate consistent income, making Perth a cash-flow-positive option.
- Potential for Capital Growth: With rising demand and ongoing development, property prices in Perth are expected to appreciate over the next few years.
- Diversified Opportunities: From apartments in the CBD to family homes in emerging suburbs, Perth offers a variety of investment options to suit different budgets and strategies.
- Economic Stability: Western Australia’s economic strength, supported by its resource-driven economy, provides a solid foundation for long-term property investment success.
Key Suburbs to Watch in 2024
If you’re considering property investment in Perth, here are some suburbs to keep an eye on in 2024:
- Baldivis: Affordable housing and increasing demand make this southern suburb a strong contender.
- Cannington: Located near transport links and shopping hubs, Cannington offers excellent rental potential.
- Ellenbrook: A rapidly growing suburb with significant infrastructure projects on the horizon.
- Joondalup: Popular among families and professionals, Joondalup boasts strong rental demand and lifestyle amenities.