Want to invest in Perth? Here's what you need to know
Screaming headlines say it all.
“WA needs 20,000 homes”.
“Perth housing crisis: WA facing shortage of 22,000 homes within four years”
For property investors searching for affordable house and land packages opportunities in the Australian market, Perth and the greater Perth region may provide that opening.
In a recent visit to Perth, the Wealthi team inspected some upcoming new property developments in the city and some surrounding areas. The team saw first-hand the plans for infrastructure, transport hub upgrades as well as amenities and lifestyle facilities.
Kej Kulane, Senior Investment Specialist at Wealthi said, “With Perth forecasted to be undersupplied by 22,000 homes over the four years - on a macro level this is likely going to put pressure on the rents and values of property.”
In this article, we use the three major metrics – population, infrastructure and employment – to analyse the growth prospects of Perth for property investors.
Migration/ Population a key driving factor for property prices
As mentioned in previous posts, migration is a key factor behind property price moves. As more people move into a particular area or region, they can drive the demand for housing and accommodation which has a direct impact on property prices.
It’s always demand and supply in action.
At the same time, the demographics of the population can have an effect on property prices. Upwardly mobile, younger people and those who want access to amenities and lifestyle facilities will tend to congregate on cities and inner-city areas.
They want access to infrastructure that will give them mobility and flexibility both for work and for leisure activities.
According to Official State Government population projections, Western Australia (WA) anticipate an extra 150,000 people living in WA over the next four years.
If 2.5 people live in each home, the State will need 60,000 properties to accommodate the new West Australians.
Some recent industry estimates say a further 10,000 new homes will be needed to replace those set to7 be demolished over the next four years
More than $1 billion earmarked for infrastructure
A review of planned development projects in Perth shows over $1 billion worth of investment pipeline. Under the “City Deal” initiative, which is a partnership between the federal, state and city governments, $1.7 billion will be used to re-energise the city of Perth through infrastructure in and around the CBD.
The 10-year development plan says it will add vibrancy to the city. It will also provide economic, social and environmental sustainability to Perth and the greater Perth area.
The “City Deal” program will involve new and re-development projects including rejuvenation of the Perth Cultural Centre, redevelopment of the East Perth Power Station, redevelopment of the WACA, upgrades of train and transport hubs and new developments in major universities in the city.
Employment and job opportunities
While WA is known for its mining industry, the state offers a wide range of employment opportunities for professionals, trades people, managerial staff, sales and support services staff.
As Australia reopens to international migration, Perth is set to attract highly-skilled professionals for different industries.
Whether you’re a first-time investor in the property market or already building your portfolio of properties, the Perth market offers lots of opportunities.
As Australia opens up fully to international migration and trade activities, Western Australia will once again play a major role in Australian international trade.
As the western gateway to Australia and due to its proximity to Asia, Perth will always attract and will be a strong market for property.
Tiffy Rubinat, General Manager at Wealthi said, “Perth is shaping up to be a good option for property investors who are looking for an affordable piece of land with proximity to the water, strong yield and cash flow.”
If you want to know more about this market and where the Wealthi team is investing in 2022, book a free call with our Investment Specialists today:
