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Perth Real Estate Market & House Prices

The capital of Western Australia, Perth is a dynamic and vibrant city with a rapidly growing economy. The Perth property market has been on the rise in recent years, but is still affordable, compared to other capital cities.
The city offers a great lifestyle and is perfect for those who want to enjoy all that Australia has to offer. The weather is perfect for outdoor activities and the beaches are some of the best in the world.

The city has a wide range of suburbs to choose from, each with its own unique character and amenities. Whether you’re looking for a family-friendly neighborhood or a hip and trendy area, you’re sure to find something to your taste in Perth.

There is no doubt that Perth is a great place to invest in property. The cost of living is relatively low, and the city has a strong economy with a diverse range of industries. Furthermore, the population of Perth is growing, which is good news for local property market.

Perth Real Estate Market

The Perth property market is on the rebound after a few years in the doldrums, with prices and rents now starting to creep up again. Investors are starting to take notice of the city again, but there are still some great bargains to be had for those willing to do their homework.

There are a number of factors driving the Perth property market at the moment. The state government is investing heavily in infrastructure projects, which is creating jobs and driving population growth.

With prices and rents on the rise, now is the time to start looking for properties in good locations that will appreciate in value.
Those who are willing to put in the work can still find some great bargains in the Perth property market.

There are a number of areas in Perth that are seeing particularly strong demand. Explore YoY and Gross Yield metrics in the table below to see top performing LGAs in the city.

The heatmap above visualises yearly house price changes in Perth The heatmap is shaded from lighter blue (indicating lower growth) to darker blue (indicating higher growth).

One way to gain a more thorough understanding of which areas may have a lower risk is by toggling the “Lower Risk” view of the heatmap. This view shades areas with a lower risk score more prominently for a clearer visualization of the data. Learn more about HtAG’s property market risk criterion here.

Unlock powerful features such as suburb-level heatmaps, capital growth, and cashflow rankings of areas when you sign up on the Professional Plan.

Snapshot of Key Metrics & Market Comparison Table

We start with a snapshot of the Perth market that provides an overview of key real estate metrics. The data in this snapshot illustrates typical price, median rent and gross yield metrics for the territory.

Use the Houses/Units toggle buttons below to view the market snapshot for different property types in Perth. Houses are free standing houses (excl. townhouses and villas). Units are apartments, studios, flats, units (excl. unit blocks).

Buy 

2BR

3BR

4BR

5BR

Rent 

2BR

3BR

4BR

5BR

Yield 

2BR

3BR

4BR

5BR

Buy 

1BR

2BR

3BR

Rent 

1BR

2BR

3BR

Yield 

1BR

2BR

3BR

You are able to drill down to LGA-level data and charts which visualise these 3 key metrics as well as other important indicators in the table that follows.

Enable additional columns in the table by clicking on the buttons underneath it. Toggle between LGA and Suburb views in the table’s navigation bar. The data in the table represents key real estate metrics as of the current quarter and is updated on a monthly basis i.e. 3 times per quarter.

Clicking on an LGA or Suburb links in the table will take you to the relevant LGA page where you can drill-down to the next level of data.

Perth House Prices

There are a number of factors that have contributed to the increase in Perth house prices.

The state’s economy has been growing steadily in recent years, with strong population growth and low unemployment. This has resulted in increased demand for housing, which has pushed prices up.

If you’re thinking of buying a property in Perth, it’s important to do your research and to be aware of the current market conditions.

The interactive chart below shows typical price for both houses and units as well as the sales volume per quarter. Toggle additional views of prices per number of bedrooms by clicking on BR2, BR3 etc underneath the graph. You can also drill down to LGA charts using the dropdown in the chart navigation bar.

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The Perth market is becoming more diverse, with more inner-city apartments being developed. This is particularly appealing to young professionals who are looking for convenient and affordable accommodation close to the city.

There has been a lack of supply of new houses in Perth, which has also contributed to the price increases. The number of new dwelling approvals has been falling in recent years, meaning that there are fewer houses being built to meet the demand.

Perth Rental Prices

There are a number of reasons why house rents are relatively affordable in Perth.

One reason is that the city is located in a relatively remote part of Australia, which means that there is less demand for housing. Another reason is that the economy of Western Australia is heavily reliant on the mining industry, which has seen a decline after the mining boob run its’ curse.

Use the interactive chart below to explore the Perth rental prices in detail.

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Additionally, Perth’s economy is less diversified than other Australian capitals, meaning that there are fewer job opportunities. This has led to lower population growth and, as a result, lower demand for housing. This has led to a decrease in population growth and an increase in the number of properties available for rent.

Gross Yield on Investment Properties in Perth

Investors are attracted to Perth for its strong economic growth, which is expected to continue into the future. The city’s population is also growing rapidly, which is creating strong demand for housing. In addition, Perth’s location makes it an attractive investment destination, as it is close to key markets in Asia.

Investors can expect to achieve a gross rental yield of above 3% in the Perth CBD. The most affordable Perth LGAs for investment property are those located on the city’s fringe, with a gross rental yield of as high as 5%.

Gross yield is the percentage of the purchase price that the investor receives in income each year. In Perth, gross yields for houses ranges from 1.6% to 5.3% depending on the location. The range for units is much higher at 3.2-9.0%. Lower priced suburbs typically offer higher yields. However, there are exceptions to this rule.

At a high level, Gross Yield for Perth houses reached its’ local peak of 4.1% in 2013 as house prices were more affordable than today. It has been on a downtrend ever since. Explore the chart below to visualise the gross yield trends for Perth LGAs in detail.

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The higher than average gross yield is being driven by strong demand for rental properties, as more people are moving to Perth in search of work. This has resulted in rents rising at a faster rate than property prices, which is good news for investors.

Investors who are looking for a healthy return on their investment should consider Perth as a viable option.

Perth Property Type Demand Profile

Detached houses are standalone homes, and are the most popular type of dwelling in Perth. They typically have more land associated with them than other dwelling types, and often have gardens and outdoor space.

Semi-detached homes are attached to another home on one side, and are usually mirror images of each other. These homes are often smaller than detached homes, but can still have gardens and outdoor space.

Flats and apartments are dwellings that are located inside larger buildings, and typically have less outdoor space associated with them.

Row houses are a type of attached dwelling, typically located in city areas. They are typically long and thin, and are attached to other homes on either side.

As far as residential property market is concerned, the most in-demand Perth real estate are 4 bedroom houses, followed by 3 bedroom houses. The units are dominant in Inner Suburbs, whereas outer LGAs are more urban and have 3 and 4 bedroom house preferences.

Use the chart below to understand which property types have the highest demand in Perth real estate market.

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Each type of dwelling has its own benefits and drawbacks, so it’s important to choose the right one for you or your tenants.
There are a number of factors that contribute to the popularity of detached houses in Perth.

Firstly, they offer a high level of privacy and independence, which is appealing to many families.

Secondly, they tend to be more spacious than other dwelling types, which is ideal for families with children or those who entertain regularly.

Finally, they are typically located on larger blocks of land, which gives residents more space to enjoy the outdoors.

No matter what type of dwelling you choose, Perth has a wide variety of options to choose from.

Perth Buy & Rent Search Index

Perth is a popular destination for property buyers, due to its strong economy and its lifestyle appeal. In recent years, the search interest for “Perth property” has increased significantly, with more and more people looking to buy a house in the Western Australian capital.

The chart below illustrates the trends for “buy” and “rent” online searches in Perth. You’ll notice that there are more searches for properties listed for sale than rental properties. The searches peaked towards the end for 2020 and have since returned to average historical levels.

The black lines on the chart highlight the search index, which is calculated by apportioning the LGA “buy” or “rent” searches to the state average.

The overall search index for Perth is calculated as an average of all LGA indexes. It has historically hovered between 6.0 and7.0 for houses which is higher than the index in less populated and economically developed areas in the state.

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As of late, there has been a sharp increase in the number of people searching for rental properties online in Perth.

With demand for rental properties outstripping supply in some Perth markets, it’s no wonder that prices are on the rise. Landlords are able to charge premium prices for properties that are in high demand, so some are seeing increases in rent prices.

Perth Market Growth Rate Cycles

When it comes to real estate, Perth is renowned for its property market cycles. These cycles refer to the changes in price growth and demand that occur in the market over time, and they can have a big impact on both buyers and sellers.

The Perth property market has entered the growth phase in early 2020. The market has been performing well since then, with house prices and rents increasing. The market is expected to continue to grow in the short-term.

The chart below illustrates the year on year changes in Perth property prices. We can see that the Perth housing market was in decline in 2016-2019, with house prices in some LGAs dropping by up to 9% yearly.

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Confidence: High, Medium, Low

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As with any market, there are highs and lows that come with property market cycles. However, in Perth, these cycles can be more pronounced than in other cities. This is due to a number of factors, including the city’s isolation from the rest of the country, and the fact that it is a resource-rich city.

One of the most important things to remember about property market cycles is that they are often driven by external factors. This means that things like the state of the economy, interest rates, and even world events can have an impact on the market. For this reason, it is important to stay up-to-date with current affairs, and to speak to a professional before making any big decisions.

Overall, property market cycles can be difficult to predict, but they are an important part of the real estate market. By understanding how they work, and being aware of the trends, you can make the most informed decision possible when it comes to buying or selling a property in Perth.

Ratio of Renters to Owners in Perth Property Markets

The importance of having more owners than renters in a property market is that it gives people a sense of stability. Owners are incentivised to maintain their property and contribute to the community, increasing the appeal of the neighbourhood as a whole.

The number of renters in Perth has increased steadily over the past decade, while the number of homeowners has remained relatively stable.

There are a number of reasons for this trend. Rising house prices have made it difficult for first home buyers to enter the market. This has led to more people renting, as they cannot afford to buy a property.

The number of renters in Perth inner suburbs is lower than that seen in other capital cities.

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There are a number of benefits to renting, such as flexibility and the ability to move easily. However, it can also be a more expensive option in the long-term. This is because you do not have the opportunity to build equity in a property.

The increase in the number of renters is being driven by a number of factors, including the high cost of housing, difficulty accessing finance and a preference for flexibility.

Renters are also more likely to be young adults, people from a non-English speaking background and low-income households.

However, it is also due to the fact that Perth is a young city, with a large population of young adults who are not yet ready to commit to buying a home.

Ratio of Units to Houses in Perth Property Markets

The ratio of units to houses has been steadily increasing over the last few years, as more and more people are choosing to live in units rather than houses. This is likely due to the fact that units are generally more affordable than houses, and they offer a more convenient lifestyle for many people.

This increase in the number of units relative to houses is due to the growing number of people moving to Perth, as well as the increasing average household size.

The ratio of units to houses in Perth is around 22:78, but this is likely to change over time. If you’re thinking of investing in the Perth property market, it’s important to keep this trend in mind and consider whether an apartment or a house is the right investment for you.

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More and more people are moving to Perth to live and work. The city offers a great lifestyle, with plenty of opportunities for work and leisure. The ratio of apartments to houses means that there is a good mix of housing options available, and that there is something to suit everyone’s needs and budget.

Perth Property Market Socio-Economics

Perth’s population is socio-economically diverse, with a variety of different income levels and occupations represented. The city has a high proportion of professionals and skilled workers, and a low unemployment rate.

Perth also has a higher rate of unemployment than the national average.

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The city has a high proportion of residents who are employed in professional and managerial occupations, and a low proportion of residents who are employed in manual occupations. This is reflective of the city’s overall socio-economic status.

Perth has a relatively low crime rate, and is considered a safe place to live. The city has a high standard of living, and residents enjoy a good quality of life.

The socio-economic status of Perth is a source of pride for residents. The city is an attractive place to live and work, and offers a high standard of living. Perth is a great place to raise a family, and there are plenty of opportunities for recreation and leisure. The city is also a safe and welcoming place for people from all backgrounds.

The high standard of living in Perth is also due to the city’s low crime rate and excellent infrastructure. The city has excellent transport links, with a modern airport and a well-developed road network. Perth also has a number of world-class educational institutions, which attract students from around the world.

Conclusion

Perth is the capital of Western Australia and is a dynamic and vibrant city with a rapidly growing economy. It offers a great lifestyle with perfect weather for outdoor activities and some of the world’s best beaches.

There are a range of suburbs to choose from, each with its own unique character and amenities. The city has a strong economy and is a great place to invest in property, with cost of living still relatively low. The property market is on the rebound and there are great bargains to be had.

Property market cycles are common in Perth, with prices and demand subject to both highs and lows. To gain a better understanding of Perth’s property market, explore the YoY & Gross Yield metrics, ratio of rent to own and ratio of units to houses. With a high standard of living and low crime rate, Perth is an attractive and welcoming city for residents from all backgrounds.

Doing your due diligence before investing in real estate is important. With the tools from HtAG Analytics, you can swiftly analyse the entirety of the property market across Australia to gain a better understanding of the risk, capital growth, and potential cashflow. Our Relative Composite Score (RCS™) integrates traditional market data points into a single score, saving you time and energy.

With fresh updates every month, this real-time data allows users to gain a trustable and complete overview of the market. Make sure to take advantage of this powerful tool now by subscribing to have full access using one of the options below.

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More About Perth Property Market

What infrastructure projects are currently planned for Perth?


Some major infrastructure projects that are currently planned or underway in Perth. You can find out more about these projects from WA government website.

2 thoughts on “Perth Property Market Forecasts”

  1. While the East Coast of Australia has been through a boom in the last five years, the Perth property market has unfortunately been moving in the opposite direction.

    After a long period of growth, the Perth market started to slow down in 2014-2015 and since that point in time has seen typical house price falls across the city. According to HTAG analysis, the typical house price in Perth peaked in Q1 2015 at A$579,602 and since that point in time has fallen to A$523,503 as of Q2 2020. That represents a fall of -9.7% in a period where other cities such as Sydney, Melbourne and Hobart performed incredibly strongly.

    However, when we examine the areas that have led the falls, we can see that there is a pattern and not all LGAs are created equal when it comes to Perth property prices. While growth rates in Perth peaked in late 2014, much of that growth was being driven by LGAs that were in the outer regions of the Perth metropolitan area. During the end of that growth stage, we can see growth above 5% in areas such as Gosnells, Canning, Kwinana, Belmont and Kalamunda. All areas with typical values under the city-wide typical price and all areas well out of the CBD.

    Interestingly, during that same period of time, blue-chip inner-city areas were only experiencing moderate or even negative growth. With the likes of Subiaco and Nedlands falling in value in late-2014. The price falls started to occur as the mining boom started to slow down, and a large exodus of workers led to steep increases in vacancy rates. At the same time, construction of new houses in the outer suburbs was reaching record levels, causing a perfect storm of falling demand and increasing supply.

    Since that point in time, the outer suburbs, in particular, have been hit hard by price falls, while the inner-city blue-chip Western suburb locations have remained relatively resilient. The sheer number of properties in the outer suburbs has led to the overall fall in Perth’s typical values, which as we’ll see has distorted the perception that the entire market has been falling.

    Perth property prices had started 2020 in strong fashion in many areas and there was a growing belief in the state that the bottom in prices had finally arrived. As we can see on the heatmap, while there was growing confidence in many areas, the situation remained the same in many areas of the city.

    Again it has been the inner-city locations that have seen price rises while the outer suburbs continue to remain relatively weak. Over the course of the last 12 months, it has been three of Perth’s blue-chip coastal suburbs that have seen the strongest price growth.

    Mosman Park in Perth’s western suburbs has been one of the top-performing suburbs in the state and over the last 12 months, the typical house price has risen by 12.33% to $1.6 million. There has been a sharp increase in prices in Mosman park during 2019, which was led by strong demand for large established blocks. As we can see, prior to the Perth-wide slowdown, prices were increasingly strongly in 2015 and getting as high as 9.17%.

    Trigg in the City of Stirling is another premium location that has bucked the statewide price falls. Houses in Trigg have seen strong growth in the last 12 months, increasing in value by 8.99% taking the typical house price to A$1.37 million. Trigg is a blue-chip suburb on Perth’s northern beaches that feature large blocks of land and water views for many homes. As we can see, Trigg has seen mixed periods of growth over the last few years, however, since the Perth market peak in 2015 and subsequent fall, the typical value in Trigg has climbed from A$1.1 million in Q1 2015 to its current typical value of $1.37 million, reflecting a 24.5% climb over that period.

    North Fremantle, which as it happens backs onto Mosman Park, is another suburb that has seen strong growth in the last 12 months. The typical value of houses in North Fremantle has increased by 6.33% to A$1.29 million. Once again, North Fremantle is well and truly entrenched in the premium area of Perth’s western suburbs. As we can see from HTAG’s forecasts, Houses in North Fremantle have been steadily climbing since Q1 2016, where they dipped to A$1.1 million as the broader Perth property market fell away. The HTAG growth rate cycles show that North Fremantle houses grew as fast as 12.54% on an annual basis right at the peak of the boom in 2015.

    As we’ve seen with Perth property prices over the last five years is that quality matters. In Perth, there’s no substitute for quality houses in premium locations. Not only have these blue-chip locations not fallen like the overall typical price, but they’ve actually increased in value.

    This clearly demonstrates that there is no one ‘Perth property market’ and there are opportunities for growth in any market if you know where to look. While there are positive signs for the Perth property market, there are still many areas that should be avoided at all cost and others that will see strong growth in the coming years.

  2. With a population of 2 million people. The Perth economy is largely driven by the mining, oil and gas industries. These industries account for a large portion of of the state’s GDP.

    The city is also a major hub for finance, retail and tourism. The Perth Mint is one of the world’s largest producers of gold bars and coins. The city is home to many of Australia’s largest companies, including BHP Billiton, Rio Tinto and Woodside Petroleum.

    Perth is somewhat isolated from other economic hubs in the country, but this isolation has not stopped it from being a major economic player. The city has a modern infrastructure and is well-connected to the rest of Australia and the world.

    The Perth economy is expected to continue to grow in the coming years, driven by the state’s strong resources sector.

    As Perth population grows, so too does consumer spending power. This is good news for local businesses, with retail sales forecast to grow. Higher consumer spending is also driving strong growth in the city’s hospitality and tourism sector.

    Business investment in Perth is also on the rise, with the Department of Treasury forecasting a yearly increase of up to 5%. This is being driven by strong growth in the mining and construction sectors, as well as increased investment in commercial and residential property.

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