Perth’s economy makes it an attractive option for property investors
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Perth’s robust economic growth and rising property values are making it an increasingly attractive option for property investors, according to a local buyer’s agent.
Peter Gavalas, a buyer’s agent at Resolve Property Solutions in Perth, highlighted several factors contributing to the city’s appeal for property investment.
Western Australia’s economy grew by 4.7% in the 2023-24 financial year, twice the national rate, according to the state government.
“The state’s economy is underpinned by a diverse range of sectors, including mining, agriculture and tourism. Western Australia’s varied economy means we’re less susceptible to downturns and more resilient in the face of global challenges,” Mr Gavalas said.
The Commonwealth Bank’s State of the States report for the first quarter ranked WA as the second-best economy, noting it was “fast-closing in on first place” behind South Australia.
This economic strength has driven population growth, with WA leading annual population growth at 3.3% between the first quarters of 2023 and 2024.
The state’s unemployment rate was 3.7% in July, the second lowest behind the ACT, according to the Australian Bureau of Statistics.
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Mr Gavalas pointed out that Perth’s property market has shown significant growth despite interest rate increases.
“Perth’s combination of a strong economy, good job prospects, growing population and rising property values creates a compelling opportunity for property investment. Also, the city is relatively affordable compared to other capitals,” he said.
CoreLogic data showed Perth’s dwelling values increased by 24.7% between July 2023 and 2024, outpacing growth in other capital cities.
The city’s low rental vacancy rate of 0.8% in July, as reported by SQM Research, is driving strong rental yields for investors.
“There’s a strong demand for rental properties. This is translating into solid rental yields, making Perth an attractive option for investors seeking rental income,” Mr Gavalas said.
He concluded that Perth’s strong economy is likely to continue attracting interstate and overseas migration, sustaining demand for housing and potentially driving further increases in prices and rents.