Your guide to buying an investment property
Imagine if you could go back in time and invest in the Sydney property market when the median house price was $625,000. Well, you can. It’s called Perth. As of mid-2024, the median house price here is what Sydney’s was way back in 2012. Like its east coast counterpart, the Perth property market looks set for significant gains.
Population growth
In 2023, WA recorded its strongest population growth on record – 94,000 people made the move from overseas and interstate. WA is the fastest growing state in Australia, with a healthy growth rate of 3.1 per cent.1 With a booming economy, this figure isn’t set to slow anytime soon. It is estimated that by 2031, Perth’s population will grow to 2.9 million people2. And they will all need somewhere to live.
Interstate investors
As Sydney and Melbourne property prices reach heights, with median house prices of $1.63 million and $1 million respectively3, east coast investors are looking and buying in the west. With Perth currently experiencing the tightest rental market in Australia, with a new low vacancy rate of 0.4%* reported in March 2024, investors can be confident of renting out their Perth property.
Australia’s strongest economy
In 2023, WA grew at double the rate of the national economy, with 4.7% growth. This resource-rich state has long been Australia’s export engine room with its abundant supply of iron ore, petroleum, gas, gold, nickel and other minerals.
The strong employment market and above average wages also makes it easier for first time home buyers to obtain mortgages, to escape the challenging rental market and rising rents.
Growth Hot Spots
The Perth property price trend shows little sign of changing course soon. Within this hot market, some areas are even hotter than others. The strongest price growth is being achieved in the more affordable outer suburbs. In the year to July 2024, Eglinton achieved price growth of 24.9 per cent* and similarly Baldivis saw an increase of 24.1 per cent*, far outshining prestige suburbs like Dalkeith (2.9 per cent growth), Cottesloe (5.3 per cent) and City Beach (7.8 per cent).
According to industry analyst, Core Logic, the strong activity in areas favoured by first home buyers will have a knock on effect to mid-priced suburbs as buyers trade up.
Community is key
Whether they are first, second or third home buyers, people are looking to raise their families in well-established suburbs, with good amenities and schools, plenty of open space, and great connectivity. Which is exactly the types of communities Cedar Woods creates.
To check out our full range of communities, in some of Perth’s fastest growing areas, use our helpful Project Finder.
Sources: *Reiwa
- https://www.uwa.edu.au/news/article/2023/december/will-was-population-continue-to-grow#:~:text=Western%20Australia's%20rapid%20population%20growth,each%20quarter%20through%20interstate%20migration.
- https://perth.wa.gov.au/building-and-planning/future-perth
- https://www.domain.com.au/news/australian-house-prices-hit-record-high-of-1-113-million-1279498/
- https://www.bbc.com/news/articles/c2vv2v6v4vvo
