Emma Norris - 15 Feb, 2021
If buying a property is your goal for 2021 (or beyond), it may be wise to set your sights on the West. While it may be known as one of our nation’s more isolated capital cities, Perth more than makes up for it in lifestyle. Combining a bustling, metropolitan CBD with a laidback beach feel, there’s truly something for everyone.
The Western Australian gem has plenty to offer in terms of property choices, too. From inner-city apartments with riverside views to larger family homes in the outer ring, there’s no shortage of options for both home-buyers and investors.
Read on for everything you need to know about Perth’s property market – including median property prices, and the best places to buy in Perth.
Perth’s property marketing is currently experiencing a long-awaited recovery in both new and established sectors. Not only is price growth booming, but houses are selling at their fastest rate in 14 years. So, if there’s ever been a time to get on the Perth property ladder, it’s now. Here’s what you need to know about the current stakes in Perth.
Perth has long been known as one of Australia’s most affordable capital cities to buy property, and for good reason. The median property price ranges from $385,000 for units to $770,000 for houses. That’s compared to around $1 million in Sydney, the country’s most expensive capital city.
Despite struggling with falling property prices over the last decade, Perth’s property market is now making a strong comeback. Due to a combination of low vacancies and pressure on rent, it has bounced back faster after COVID-19 than many of the other capital cities.
With many of the best-performing areas also being on the more affordable end of the spectrum, conditions are also favourable for first-time buyers. This has been aided by the Federal Government’s HomeBuilder grant, which has incentivised first time buyers to purchase residential land to buy on.
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Perth has a unique combination of relatively low property prices and high returns, making it an ideal choice for investors. Houses in Perth rent out for an average of $500 per week with an average rental yield of 3.4%. Meanwhile units rent for an average of $410 per week with a rental yield of 5.5%
After a period of stagnation, Perth’s capital growth is on the cusp of a boom. Experts predict that it will lead the country in capital growth, with a forecasted rise of 18% from 2021 to 2023.
Perth has experienced significant population growth over the last decade. The residential population has almost doubled in the last ten years to reach 24,244 people and is estimated to reach 39,500 people by 2036.
Perth’s skyrocketing population is owed partially to the growing FIFO market, as well as homeseekers flocking to the city from other states to take advantage of the affordable prices.
Perth has a diverse population, made up of families, students, young professionals and FIFO workers. By 2026, Perth is predicted to experience a 34.9% growth in population in people under working age. This points to the growing number of young families bringing up children in the city.
Perth sits proudly on the north bank of the Swan River, and can be drawn broadly into four regions. In the North, you’ll find the buzzing harborside hub of Northbridge, while South Perth is known for its leafy, green streets and picturesque parks. Travel East and you’ll find inner-city charm a stonesthrow from the CBD, while West Perth stretches around the sprawling Kings Park. Fremantle – or Freo, as locals call it – in the Southwest is also a popular destination, thanks to its idyllic coastal charm.
Getting around is easy in Perth, thanks to the suburban bus routes and train lines that run through the city. It also features a major rail interchange, Perth Train Station, which connects it to other cities in Western Australia.
Perth has a vibrant and progressive culture that attracts people from all walks of life. Downtown Perth is bursting with life and has no shortage of diverse eateries that have bounced back well in the face of COVID-19. There’s plenty of shopping on offer too, from the commerce hubs of Forrest Chase and Carillon City to the historic London Court. From the 20 sports clubs to iconic beaches like Cottlesloe, the city truly has a mix of everything.
Much like the population, Perth’s economy has experience strong growth over the last decade. According to data from REMPlan, Perth supports around 150,000 jobs and has an annual economic output of $83.158 billion. The mining industry is the biggest driver of economic growth in Perth, equating to 33% of output. As the economy is less reliant on the tourism industry, Perth’s economy has stayed resilient throughout the pandemic.
Thinking about moving to Perth, but still have some burning questions? Here’s everything you need to know:
A perfect storm of conditions make it an ideal time to buy property in Perth. While property prices are about the boom, Perth still has the lowest median house prices of any capital city. This makes it more accessible for first-time buyers looking to get on the property ladder with the likelihood of high returns in the future.
Record low mortgage rates, improving economic conditions and government grants also make it a great time to claim your piece of earth in Perth.
Western Australia has a range of government incentives that make it even more affordable to build or purchase a property in Perth. These are the grants that are currently available:
The $25,000 Federal HomeBuilder Grant
This nationwide grant is available to owner occupiers (including first home buyers) who want to build a new property or substantially renovate an existing one. It can be used simultaneously with the $20,000 WA Building Bonus and the $10,000 WA First Home Owner Grant.
This grant has been extended to include new building contracts signed between 1st January 2021 and 31st March 2021 at a reduced incentive of $15,000.
The $20,000 WA Building Bonus
Eligible applicants with a contract to build a new property on vacant land or enter an off-the-plan contract to buy a new home in a single-tier strata scheme may be entitled to a $20,000 grant.
The $10,000 WA First Home Owner Grant
This is a one-off payment of up to $10,000 designed to incentivise and help first home buyers purchase their first property. It can be used for buying or building your first home, but it must be used as your primary place of residence.
WA FHOG Duty Concession
If you are eligible for the WA First Home Owner Grant or would otherwise be but you are purchasing an established home, you may also be entitled to a concession on the first home owner rate of duty.
Not sure if you’re eligible for these government grants in Perth? Consider working with one of our experienced brokers who could assist you in identifying your eligibility and preparing your application.
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Perth is not only one of the most liveable capital cities in the world, it also happens to be the most affordable in Australia. According to data from Numbeo, the estimated monthly cost of living excluded living for a family of four is around $4,674. For a single person, estimated monthly costs are $1311. The cost of living index in Perth is 4.73% lower than in Sydney, Australia’s most expensive city. Meanwhile, rent in Perth is on average 48% lower than Sydney.
The tradeoff with Perth is that being quite isolated, it can be expensive and time-consuming to travel elsewhere in Australia. However, many people find that the affordable cost in living and great lifestyle makes the distance worthwhile.
There’s no hard and fast answer to the question “where is the best place to live in Perth?” There’s truly something for everybody and each of its suburbs has a very different feel. However, there are certain pockets of the city that are considered more liveable than others.
In a report published by realestate.com.au, East Perth was named the most lifestyle-friendly suburb not only in Perth, but all of Western Australia. This is thanks to its close proximity to the city (an 8 minute drive or 12 minutes by public transport), waterfront dining scene and impressive position on the Swan River. Here, the median house price is $913,000, compared to $570,000 for units.
Highgate is considered another highly liveable suburb in Perth. Located under 2 km North-East of the CBD, this inner-city area is actually the smallest neighbourhood in Perth. This gives it a welcoming, small town feel, despite how close it is to the city. Here, the median house price sits at $700,000, compared to $357,500 for units.
A little further from the CBD, Ashfield is also regarded as a great place to live in Perth. Just over 8 km from the city centre, this riverside suburb was once known for its railway houses converted into state-funded housing. Now, it’s renowned for its affordable prices – the median house price here is just $455,000.
If your budget extends a little further, Crawley and Rossmoyne are also popular suburbs in Perth. Sitting on the serene Matilda Bay, Crawley will set you back around $815,000 for a unit, while Rossmoyne is an affluent suburb in the Canning River with a median house price of $1,160,000.
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As far as capital cities go, Perth is considered one of the safest in Australia. But like anywhere, the level of safety varies from suburb to suburb. If priority is a high priority for you, you’re not alone. According to realestate.com.au’s Life in Australia Index report 72% of Perth residents consider safety their number one factor in deciding where to live – ranking it above even affordable housing.
Police data from Canstar shows that Iluka is Perth’s safest suburb, with a crime rate of just 1.33 reported incidents per 100 residents. The second safest is Mahogany Creek, at 1.56 incidents per 100 people. Other extremely safe suburbs in Perth include Hovea, Stoneville, Parkerville, Tapping, Burns Beach, Connolly, Roleystone and Darch.
Those who have seen the luxurious mansions of Dalkeith would not be surprised to hear that it is the richest suburb in Perth. With a median sale price of $2.35 million according to REIWA, it experienced a 4% price growth in 2020.
Perth’s second most expensive suburb is Cottlesloe, which is owed to its idyllic beach lifestyle and proximity to Fremantle and the CBD. While it’s median sale price declined by 12.8% in 2020, it still sits strong at $1.85 million.
Third on the list is Nedlands, which crept up and stole the title from City Beach in 2020. This affluent Western suburb features both river and ocean views, making it a desirable place to live in Perth. Here, the median house price is $1.75 million, which has seen a 7% increase in 2020. Nedlands is also one of Perth’s most in-demand suburbs, taking just 26 days to sell on average – 16 days faster than the Perth region as a whole.
Ready to buy a property in Perth? Now is the time to dive in and take advantage of the favorable property conditions. However, to ensure you score the best deal on your mortgage it’s best to work with a home loan specialist. eChoice’s experienced brokers can help you compare hundreds of home loan options and find the right option to suit your needs.
Words by Emma Norris
You don’t need to leave your house to get an eChoice home loan consultation – As always we will discuss your options over the phone – we’re here to make your home loan journey easier.