Perth is the capital and largest city of the Australian State of Western Australia (WA). Perth is part of the South West Land Division of Western Australia, with most of the metropolitan area on the Swan Coastal Plain between the Indian Ocean and the Darling Scarp.
Let’s move on from Perth’s geography and talk about real estate facts and numbers!
As per revised property data by CoreLogic, Perth house prices have surged more than 18% in the past year, and even more in regional Western Australia. Perth’s September Home Value Index shows a staggering 18.1% increase in home values in Perth over the past year. That is broken down to 18.5% for houses . Do you know what this means? It means the median value of a home in Perth is now $524,589!
If the above data isn’t enough to convince you that Perth is coming up as a potential investment hotspot, then down below are supplementary reasons as to why Perth is the perfect place to invest in!
- Perth dominates the Western Australian economy How so? Thanks to the service sector! Perth has become a hub of technology focused startups since the early 2000s who provide a pool of highly skilled jobs to the Perth community, thus making it a favourable investment.
- Perth is also home to four public universities, the University of Western Australia, Curtin University, Murdoch University, and Edith Cowan University and one private university the University of Notre Dame, thus making it a student favourite destination.
- With infrastructural development that will generate employment and encourage migration, investors see furthermore potential in returns as well as price growth in the upcoming years. Let us walk you through, and give you a brief overview of the top 3 major infrastructural projects of Perth!
a. Metronet –
The $1.84Bn Metronet is Perth’s most ambitious program of rail projects. Stage One of Metronet will deliver an expected 72 kilometres of new passenger rail and up to 18 new stations.
b. Tonkin Highway Gap –
The $290Mn Tonkin Highway is part of Perth’s Principal Road Freight Network, connecting major freight hubs. This project is part of the Roads of Strategic Importance (ROSI) initiative by the Federal Government with work set to be completed in 2022.
c. Port Augusta to Perth Corridor –
The $62.5Mn Port Augusta to Perth Corridor links Perth to Adelaide and is a huge stretch of road spanning 2,388 km. The project will include upgrades to widen, strengthen and realign various sections along the corridor to improve the flow of vehicles and increase access for higher efficiency heavy vehicles. - Perth is Australia’s fourth-most populous city and accounts for 8.58% of the national population. It has an estimated population of over 2.14 Mn people, which is estimated to grow upto 3Mn in the next 8 years! And we all know what population growth means, more infrastructural development and hence more employment opportunities.
- While 2020 affected the housing market in terms of property prices, Perth’s rental market recorded increases in their gross rental yield across both houses and units. The gradual increase in rental yield Perth experienced in 2020 has continued in the first half of 2021 with houses and units hitting a high rental yield during this period of 4% and 5.3%, respectively, in June 2021.
- Perth has a low vacancy rate of 0.6% only! A good rental yield is directly proportional to a lower vacancy rate! Along with that, low vacancy rates mean there are more occupied units therefore a flourishing real estate market!
Now that you know all the major reasons why you should invest in Perth, connect with our property consultants and get all the help and advice you need while planning your next investment, hopefully in Perth! Get with us at at 02-81230180 or dropping us an email at info@successavenue.com.au
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