Despite the ongoing cost-of-living crisis and rising inflation, “Perth has proven to be a standout performer in the national property landscape, delivering solid returns for investors and homeowners alike,” says Zaki Ameer of DDP Property.
According to recent data from CoreLogic, Perth’s property values have risen by 8.9% over the last year, with the median house price now sitting at approximately $587,000. This growth is particularly notable when compared to the national average, which saw more modest increases. Perth’s market performance can be attributed to several factors that have bolstered its strength, even in the face of economic adversity.
One key driver behind Perth’s robust property market has been the ongoing demand for housing, fueled by the city’s relatively affordable property prices compared to other capital cities like Sydney and Melbourne. This affordability and the city’s strong economic fundamentals have attracted a steady stream of local and interstate investors seeking to capitalize on the growth potential.
Ameer says: The rental market in Perth has also seen significant gains, with rental yields remaining strong. According to SQM Research, Perth’s rental vacancy rate has dropped to 0.8%, one of the lowest in the country, reflecting the high demand for rental properties.”
This tight rental market has increased rental prices, further enhancing the returns for property investors.
Moreover, Perth’s economy has benefited from the ongoing strength of the mining and resources sector, which has continued to attract workers to the region, thereby sustaining demand for housing. The Western Australian government’s infrastructure projects and population growth have also contributed to supporting the property market’s stability.
It is also worth noting that while inflation and the cost of living have posed challenges nationwide, Perth’s property market has shown a unique resilience. Investors who entered the market early have enjoyed substantial capital growth, while those who purchased more recently still see positive returns despite the broader economic pressures.
In conclusion, the Perth property market has not only weathered the rising inflation and cost of living storm but thrived in this challenging environment. Investors and homeowners in Perth have enjoyed significant returns over the past year, and the city’s property market remains a compelling option for those looking to invest in a resilient and growing market. With its strong economic foundation and ongoing demand, Perth will likely continue its upward trajectory, offering excellent opportunities for seasoned and new investors.
