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WA Real Estate Market & House Prices

The Western Australia property market has been one of the strongest in the country. With no stamp duty on properties under $430,000 for first home buyers and a range of other incentives, WA has been a popular choice for buyers looking to take advantage of the lucrative market conditions.

First homebuyers have been a key driver of the market, with the number of first homebuyers increasing in 2021-2022. Investors have also been active in the market, with the value of investment loans increasing significantly.

There are a number of factors driving this renewed growth in the WA property market. The state’s economy is now one of the strongest in the country, thanks to the mining industry. This has created many new jobs and increased population growth, which is putting pressure on the housing market.

If you’re thinking of investing in the Western Australia property market, it’s important to do your research first. There’s a lot of opportunity for investors, however data-driven market due diligence is a must before moving on with property search.

The heatmap above showcases the annual house price changes in Western Australia. Darker blues represent higher growth, while lighter blues signify lower growth. This data is refreshed each month for the most current analysis.

Get an different perspective with the Lower Risk view, which presents areas with a lower risk as more vivid. This risk score ranges from 1 – 100 and is determined by a variety of risk factors, such as statistical data, market conditions, and environmental exposures. Learn more about HtAG’s property market risk criteria here.

Take your research to the next level by signing up for our Professional Plan and gaining access to specialised features like suburb-level heatmaps, capital growth metrics, and cashflow rankings.

Snapshot of Key Metrics & Market Comparison Table

We start with a snapshot of the Western Australia 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 state.

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

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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.

WA House Prices

In recent years, the Western Australian housing market has seen significant price growth. The strong price growth is being driven by a number of factors, including strong economic conditions, population growth and low interest rates.

The typical house in the Western Australia have seen significant peaks and throughs over the past 10 years.

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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There are a number of factors driving the increase in Western Australia house prices. The state has experienced strong economic growth in recent years, with employment levels rising and wages growing.

If you’re looking to buy a house in Western Australia, you’ll need to be prepared to pay a premium, compared to prices just a few years ago. However, with prices expected to continue to rise, it could be a wise investment in the long run.

WA Rental Prices

In recent years, rental prices in Western Australia have increased significantly, especially in the capital city of Perth. Use the interactive chart below to explore the rental prices in Western Australia in detail.

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There are a number of factors that have contributed to the rising rental prices in Western Australia.

The population has been growing at a faster rate than the number of new houses being built, meaning there is more competition for rental properties.

The mining industry has also caused rents to increase, as workers on high salaries are willing to pay more for accommodation.

Gross Yield on Investment Properties in WA

With interest rates at a historic low, many investors are turning their attention to property in search of better returns. And with the house price in Perth will bellow other capital cities in the country, gross rental yield – the return on your investment before costs – is an important metric to consider.

Gross yield is the percentage of the purchase price that the investor receives in income each year. In Western Australia, gross yields for property investment ranges from 1.6% to 13.3% depending on the location. Lower priced LGAs typically offer higher yields. However, there are exceptions to this rule.

At a high level Gross Yield in WA reached its’ local peak of 3.98% in 2019 as house prices declined in that year. Since then the gross yield dropped further to 3.85% in 2022 Q1.

Of course, gross yields are just one part of the equation – you also need to consider things like capital growth potential, vacancy rates and expenses. But if you’re looking for a state with high gross rental yields, Western Australia is definitely worth a closer look.

Explore the chart below to visualise the gross yield trends for WA LGAs in detail.

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WA Property Type Demand Profile

There are a number of different property types in high demand across Western Australia. Not surprisingly, the most sought-after tend to be large family homes, directly on or very close to the beach.

Apartment living is also becoming increasingly popular in WA, especially among young professionals and retirees. This is due to the low maintenance and convenience that apartments offer.

As far as residential property market is concerned, the most in-demand WA real estate are 3 and 4 bedroom houses, followed by 2 bedroom units. The units are dominant in CBD of urban centres, whereas other LGAs are mostly rural and have 3 and 4 bedroom house preferences.

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

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Rural land, which is perfect for those looking to get away from the hustle and bustle of city life, is also showing an uptick in interest from buyers. There is a wide range of rural land available, from vast open pastures to more secluded acreages.

Whatever type of property you’re after, you’re sure to find it in Western Australia. The diverse range of landscapes and climates across the state means that there is something to suit everyone’s needs.

Western Australia is a large and diverse area, so the property people search for vary depending on the location. Be sure to explore the data to understand dwelling type preferences in each of the state’s LGAs.

WA Buy & Rent Search Index

AAs the world becomes more and more digital, it’s no surprise that people are using the internet to search for properties. This is especially true in the state of Western Australia, where interest in online property searches has increased significantly in recent years.

This increase in interest is likely due to a number of factors, including the state’s strong economy and the recent introduction of Stamp Duty concessions for first-home buyers. With more and more people searching for property in Western Australia, it’s clear that the state is an attractive option for those looking to buy a home.

The chart below illustrates the trends for “buy” and “rent” online searches in Western Australia. You’ll notice that searches for rental properties have increased over the years. Both “Buy” and “Rent” 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 WA is calculated as an average of all LGA indexes. It has historically hovered between 3.0 and 4.0 for houses which is lower than the index in more populated and economically developed states in the country.

Notably the search index for Western Australia units is historically somewhat higher than that for houses, favouring the index of 4.0.

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As the population in Western Australia grows, so does the demand for rental properties. And with the rise of the internet, more and more people are searching for rental properties online.

According to a recent study, the number of people searching for rental properties online in Western Australia has grown significantly recentrly. And the majority of those searchers are looking for properties in the Perth metropolitan area.

WA Market Growth Rate Cycles

The real estate market in Western Australia is subject to growth cycles, which are periods of increased demand for property followed by periods of decreased demand. In the past, growth cycles in the Western Australian real estate market have been followed by periods of over-supply and weak market conditions.

The Western Australia 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 WA property prices. We can see that the WA housing market was in decline 2014-2019, with house prices in some regional LGAs dropping by as much as 40%.

A similar pattern can be observed for units with trough in some LGAs reaching negative 29% in 2017.

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Looking forward, it is expected that WA’s real estate market will continue to grow in the near future as the state’s economy continues to strengthen.

Ratio of Renters to Owners in WA LGAs

There is a sizable amount of renters in Western Australia. Just over a quarter of all households in the state are renting, which is one of the highest proportion of any state or territory in Australia. This high level of renting is due to a variety of factors, including the state’s high population growth rate and the fact that many people who move to Western Australia do so for work opportunities rather than to purchase a home.

The large number of young people in Western Australia is another factor that contributes to the high renter to owner ratio. This is because young people are more likely to rent than own a home. This is due to a number of factors, including the fact that young people are more likely to move frequently, have limited income, and may not be able to afford a deposit on a home.

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As a rule of thumb, there should be no more than 45% renters in an area for it to be considered to have a good investment potential. Interestingly the overall percentage of renters in WA is at 32% which is well below the threshold.

Ratio of Units to Houses in WA

There are more houses than units in Western Australia, with a ratio of about 9 to 1. This is due to the state’s large size and low population density, which results in a demand for single-family homes.

However, there are pockets of high density in cities like Perth and Fremantle, where apartments are more common. For the most part, apartment living is not as popular in Western Australia as it is in other parts of Australia. This is likely because the majority of residents are families who prefer to have their own backyard and garden.

The ratio of apartments to houses has been slowly increasing over the past few years, as more and more people are drawn to the convenience and amenities that apartments offer.

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The increasing ratio of apartments to houses in Western Australia is having a few impacts on the state. However, compared to other states and territories, the overall ratio of units to houses is well under the threshold at with just 10% of dwellings sold being units.

There are a number of reasons why people may choose to live in an apartment over a house, including the lower cost of ownership, the lack of maintenance and upkeep required, and the proximity to conveniences like shops, restaurants, and public transportation.

With the urban population of Western Australia expected to continue to grow in the coming years, it is likely that the ratio of apartments to houses will continue to increase as well.

WA Property Market Socio-Economics

WA is one of the most socio-economically advanced states in Australia. It has the highest GDP per capita and the lowest. The socio-economic status of Western Australia is consistently ranked as one of the highest in Australia.

The state’s strong economy is due to its abundant natural resources, which include minerals, forestry and agriculture. WA also has a well-educated and skilled workforce. The state’s unemployment rate is lower than the national average, and its median weekly earnings are among the highest in the country.

WA’s high socio-economic status is reflected in its high standard of living. The state has a high proportion of its population who own their own home, and its residents have access to good quality health care and education.

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However not all LGAs exhibit high standard of living. The index of relative socio-economic advantage and disadvantage ranges from a high of 10.0 in the Perth metropolitan LGAs to a low of 1 in the regional areas, some of which are the most disadvantaged regions in Australia. These regions typically have high levels of unemployment, low levels of educational attainment, and high levels of crime.

If you’re thinking of buying a property in WA, it’s important to do your research and know the socio-economic status of the property market you’re considering to invest in.

Conclusion

The property market in Western Australia has been a strong choice for both first home buyers and investors due to its enticing incentives. With no stamp duty incentives as well as an increase in investment loans, the market has thrived as a result of the population growth, making it an attractive option for buyers.

Popular property types in WA vary by location, with family homes and apartments in high demand. Furthermore, the number of people searching for rental properties online has seen an increase, while the ratio of units to houses is still low in comparison to the national average.

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More about Western Australia Property Market

What infrastructure projects are currently planned in Western Australia?

Major infrastructure projects are planned or underway across Western Australia, including road, rail, port and airport upgrades. These projects will create thousands of jobs during the construction phase and help to boost the state’s economy. The WA Government is committed to ensuring that these projects are delivered on time and on budget. For more information on infrastructure projects, visit the WA government website.