The Western Australian property market currently stands in a position of relative strength: strong recent growth, tight supply, supportive demographics and a resilient economy. For buyers and investors, this means the environment remains favourable — though the heady growth of the past years is unlikely to continue at the same pace.

Looking towards 2026, the outlook is cautiously optimistic: price growth is expected to continue, but at a more moderate rate (around 4–6% for houses, somewhat more for units in desirable locations). The smart play will be to focus on quality locations, housing types with strong demand (units, townhouses, suburban houses near amenities/infrastructure) and to factor in risk (affordability, economic exposure, suburb‑specific factors).

If you’re considering buying or investing in WA property now or over the next year, the key is to move early, choose well‑located stock, anticipate the longer‑term horizon, and avoid relying on extraordinary short‑term gains. While the market is still favourable, the era of double‑digit annual growth is likely winding down and selective discipline will matter.

Strong Up‑trend in Recent Years

The WA property market has been among Australia’s most dynamic — especially in and around Perth and selected regional centres. For example:

• In 2024 the median house price in Perth rose by 24.2% year‑on‑year, after a weaker base in previous years.
• Dwelling values in Perth jumped ~12% annually in recent quarters, while monthly growth hovered around 0.9%.
• Some regional WA markets recorded even stronger growth, on track for ~20% price gains in 2025 in certain hotspots.

Key Drivers

Several underlying fundamental factors support the momentum:

• Population growth: WA has been seeing strong inward migration and population increases, boosting housing demand.
• Tight supply: Housing supply remains constrained. For example, completions and land release have struggled to keep pace.
• Strong local economy: The resources sector, employment levels and economic stability in WA strengthen buyer and investor confidence.
• Relative affordability: Compared to Sydney or Melbourne, many parts of Perth still offered comparatively better value, attracting both local and interstate buyers.

Market Characteristics & Risks

• Vacancies in Perth’s rental market have risen from crisis lows (~0.4%) up to ~2.5% in some reports, indicating easing supply pressure but still tight relative to many markets.
• Sales volumes have softened slightly from peak activity; while listings remain low, time on market is increasing in some areas, signaling a gradual balance shift.
• Affordability is becoming a concern: high growth means home‑buyers are moving up price tiers, and some regions may be more exposed to risk. For example, dependency on resource industry, or bursts of rapid growth can pose downsides.

Outlook to 2026 and Beyond

Forecasted Price Growth

The consensus of recent forecasting research for WA / Perth is:

• Moderate growth for remainder of  2025: many analysts estimate 5–10% price growth in 2025, after the high‑growth years.
• For 2026: expectations are a slightly slower growth rate, possibly in the order of 4–6% for houses and maybe 5–8% for units in certain segments.
• Longer term (towards 2030), growth may pick up again as supply constraints, population momentum and infrastructure tailwinds combine.

What Will Drive the Market to 2026?

• Infrastructure & regional expansion: New infrastructure in Perth and regional WA will open up new suburbs and drive demand.
• Interstate migration continuing: If the flow of people into WA remains strong, demand will be sustained.
• Interest rates: Any downward movement in the national cash rate or relaxed lending conditions could boost buyer capacity and market activity.
• Unit market strength: With affordability constraints on houses, units (apartments/townhouses) are likely to be in demand and may outperform houses in some areas.

Risks & What to Watch

• Affordability fatigue: If interest rates rise again, or household incomes don’t keep pace, some buyer segments may be squeezed.
• Oversupply risk in certain segments or suburbs: While supply is constrained generally, some new‑build apartment precincts or over‑hyped suburbs could see softer outcomes.
• Economic exposure: WA is still more exposed to resource‑sector cycles than some other states; a downturn in global commodity prices or mining investment could impact local employment and demand.
• Policy changes: Stamp duty, land tax, foreign investment rules or state housing policy could change and impact the market.
• Regional divergence: Not all suburbs or regions will perform equally — some areas may lag, some may lead. Entry‑point risk is higher in modest‑growth pockets.

 Top 10 Suburbs – House Sale Price Growth (August 2025)

Rank	Suburb	Median House Price (Aug 2025)	Annual Growth	5-Year Growth	Median Selling Days (Jun–Aug 2025)
1	Bateman	$1,303,000	37.9%	72.5%	20
2	Ardross	$1,765,000	33.2%	95.2%	18
3	Madeley	$975,000	30.3%	74.1%	13
4	Trigg	$2,300,000	27.8%	93.3%	15
5	Woodvale	$1,120,000	25.4%	83.2%	9
6	Calista	$600,000	25.0%	131.2%	12
7	Silver Sands	$837,500	25.0%	99.4%	23
8	Woodlands	$1,750,000	25.0%	90.2%	17
9	Aubin Grove	$923,000	24.7%	79.6%	11
10	Midvale	$655,000	24.5%	116.5%	7

Key Insights:

• Top Annual Growth: Bateman leads with +37.9%.
• Biggest 5-Year Growth: Calista at +131.2%, followed by Midvale at +116.5%.
• Fastest Selling: Midvale (7 days), Woodvale (9 days) — indicating high buyer demand.
• High-End Markets: Trigg and Ardross sit at the top in terms of price ($2.3M and $1.76M respectively).
• Affordable Growth Options: Calista and Midvale offer lower entry points with very high long-term growth.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

The only way was up in 2024 for Perth’s property market, despite sky-high interest rates hurting mortgage holders and bringing house prices down over east.

Perth’s market exceeded many forecast predictions, recording a rise of more than 20 per cent off the back of record migration, an embattled construction industry, relentless inflationary pressures and a chronic undersupply of housing. Since 2019, Perth house prices have risen from a median of $484,788 to hit a record high of $882,075.

Residential Property: Strong Demand with Rising Prices

The Perth residential property market has seen a significant rebound since 2020, following a period of stagnation in the late 2010s. In 2025, this upward trend is expected to continue, driven by increasing demand for both new and established homes. There are several key reasons behind this positive outlook:

1. Population Growth: Western Australia’s population is growing steadily, aided by interstate migration from other states as well as international immigration. Perth is becoming an increasingly attractive destination due to its affordable lifestyle and relatively lower cost of living compared to Sydney and Melbourne. Population growth is a key driver of housing demand, particularly in the suburbs and outer areas of Perth.
2. Low Interest Rates: While interest rates are expected to gradually rise in the coming years, the Reserve Bank of Australia (RBA) has maintained historically low rates for some time. While this makes borrowing more accessible, it’s expected that the low rates will continue to support demand for property in 2025, particularly among first-time homebuyers and investors.
3. Limited Supply of Land: Perth’s inner suburbs have limited available land for new development, especially as urban sprawl is being restricted in favour of more sustainable growth. This limitation, combined with high demand, is expected to contribute to price increases, particularly for properties close to the city centre or near transport hubs.

Commercial Property: Mixed Performance

The commercial property market in Perth, particularly office space and retail, has faced challenges in recent years, partly due to the COVID-19 pandemic and the increasing shift towards remote work. However, there are signs of recovery as businesses adjust to the new normal and demand for office space starts to stabilise. Perth’s commercial property market in 2025 is likely to experience a mixed performance:

1. Office Space: With businesses adjusting to hybrid and flexible work models, demand for traditional office space in Perth may remain subdued in the short term. However, there is likely to be demand for modern, flexible office spaces, particularly in the CBD and other key business districts, as companies seek to reconfigure their office environments to support new ways of working.
2. Retail: The retail sector, especially bricks-and-mortar stores, has been under pressure due to the rise of online shopping. However, Perth’s retail property market may see some growth in 2025, as consumer confidence returns and more people return to physical stores. Local shopping precincts and suburban retail areas could see renewed interest as foot traffic rebounds.
3. Industrial and Logistics: The industrial sector, particularly warehousing and logistics, has been one of the strongest performers in Perth in recent years. This trend is expected to continue, as demand for storage space and distribution hubs rises, fueled by the growth of e-commerce and Perth’s position as a key trading hub in Western Australia.

Key Drivers to Watch in 2025

Several key factors will influence Perth’s property market in 2025. Investors, buyers, and sellers should keep an eye on the following:

• Interest Rate Movements: While interest rates are expected to remain relatively low for the time being, the RBA’s decisions regarding rate hikes will play a crucial role in shaping the affordability of borrowing. Even a small increase could have a significant impact on property prices and market sentiment.
• Infrastructure Projects: Major infrastructure projects in Perth, such as the METRONET rail expansion and the development of new residential communities, will drive demand for housing and property investments in certain areas. These projects are expected to boost accessibility, improve urban amenities, and stimulate economic growth.
• Government Policy: Both state and federal government policies will play an important role in the property market. Any changes to housing affordability schemes, taxation (such as capital gains tax), or foreign investment regulations could impact the market.
• Global Economic Factors: Global economic uncertainty, particularly in relation to commodity prices, inflation, and geopolitical tensions, could influence Perth’s economy and property market. Fluctuations in the mining sector, for instance, could directly impact property prices in certain areas of Perth, particularly those linked to resource industries.

Forecast for Perth’s Property Market in 2025

In summary, the Perth property market is expected to see moderate but consistent growth in 2025. Residential property will likely remain in demand due to population growth, low interest rates, and limited land supply, driving price increases. However, there may be challenges for certain sectors, particularly commercial office space, as remote working trends continue.

For investors, Perth presents an opportunity for capital growth, particularly in well-located residential areas and industrial properties. Buyers should remain cautious and consider long-term trends, such as infrastructure developments, before making significant decisions.

As Perth continues its economic recovery and diversification, the property market in 2025 will reflect these shifts, creating a dynamic landscape for all stakeholders. The key to success in the Perth property market will be understanding local conditions, staying informed on policy changes, and adapting to evolving market trends.

Currently, the city is providing reasonable value for properties, but it’s heading toward becoming overvalued. Looking ahead, we’re expecting growth in the range of 10 to 12 percent, but that growth is beginning to enter overvalued territory.

After that, we might experience a flat period. While it may not be a sharp downturn, property values could potentially drop by 10 to 20 percent in real terms over time.

What suburbs will have the strongest growth in coming years?

2025’s theme will be amenity. As interest rates invariably start to drop, homeowners will use this increased serviceability to grapple their way up the amenity ladder using the equity they’ve created over the last few years.

Whilst the lower quartile is not expected to drop in value, the buyer pool will move up the ladder at the expense of those areas that previously offered access and affordability, but not amenity. The ones to watch are Riverton, Willetton, North Beach, Mount Lawley, Wembley, Melville and Mindarie.

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If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

As Western Australia’s property market navigates the evolving economic landscape, it’s crucial for investors, buyers, and industry professionals to understand the projected trends and identify promising investment opportunities. With the state showing signs of resilience and growth, the outlook for the WA property market over the next 12 months looks promising. This article explores the key trends shaping the market and highlights the suburbs poised for investment success.

Economic and Market Trends

1. Robust Economic Performance

Western Australia’s property market is significantly influenced by the state’s economic health, which remains strong due to its thriving resources sector. The demand for minerals and energy resources continues to drive economic growth, contributing to a positive property market outlook. Ongoing government infrastructure projects and urban developments also bolster economic activity, supporting the property sector.

2. Population Growth and Housing Demand

WA’s population growth is a critical factor for property demand. Increased migration from other states and international arrivals are expected to drive demand for both residential and rental properties. This growing population, particularly in urban areas, will likely continue to influence property market dynamics, creating opportunities for investors.

3. Housing Supply and Affordability

The supply of new housing in WA has been a concern, with limited new developments impacting affordability. However, the state government is addressing this through various initiatives aimed at increasing housing supply. While affordability remains a challenge, the anticipated increase in housing supply should help balance the market and potentially ease price pressures.

4. Property Price Trends

Property prices in WA have shown signs of recovery, following a period of stagnation. With strong economic performance and sustained demand, moderate price growth is expected over the next year. However, price increases may vary by location and property type, influenced by local market conditions and infrastructure developments.

5. Interest Rates and Financing

Interest rates are a key factor in the property market, affecting borrowing costs and buyer sentiment. While rates are currently low, any changes in monetary policy could impact market dynamics. Potential buyers and investors should stay informed about interest rate trends and their implications for financing and investment decisions.

Top Suburbs to Invest in Western Australia

As the WA property market evolves, certain suburbs are emerging as attractive investment opportunities. Here are some key suburbs to consider for investment over the next 12 months:

1. Perth CBD and Northbridge

Perth’s central business district and Northbridge continue to be strong investment areas due to their vibrant culture, proximity to amenities, and ongoing urban redevelopment. The area’s appeal to both residents and investors, combined with infrastructure projects like the Metronet rail expansion, makes it a prime location for long-term investment.

2. Fremantle

Fremantle, with its historic charm and coastal appeal, is gaining traction among investors. The suburb’s ongoing revitalization projects and growing popularity as a cultural and tourist destination contribute to its potential for capital appreciation. Additionally, Fremantle’s strong rental demand makes it an attractive option for buy-and-hold investors.

3. Joondalup

Joondalup, located in Perth’s northern suburbs, is an appealing choice for property investors due to its significant growth and development potential. As a major commercial and educational hub, Joondalup benefits from infrastructure improvements and a growing population. The area’s development projects, including the expansion of the Joondalup Health Campus, enhance its investment appeal.

4. Burswood

Burswood is experiencing substantial growth and transformation, driven by its proximity to Perth’s central business district and major infrastructure projects like the Optus Stadium and Crown Resort. The suburb’s ongoing urban development and increasing property values make it a promising area for investment.

5. Mount Lawley

Mount Lawley, known for its character homes and vibrant community, remains a sought-after suburb in Perth’s property market. The area’s appeal, coupled with its proximity to the city and quality local amenities, contributes to its strong investment potential. As urban development continues, Mount Lawley is expected to see further growth and property value appreciation.

Conclusion

The Western Australian property market is poised for a positive outlook over the next 12 months, supported by robust economic performance, population growth, and ongoing infrastructure projects. While challenges related to housing affordability and interest rates may arise, the overall market conditions suggest steady growth. By focusing on key suburbs such as Perth CBD and Northbridge, Fremantle, Joondalup, Burswood, and Mount Lawley, investors can capitalize on the opportunities presented by WA’s evolving property landscape. Staying informed about market trends and local developments will be essential for making strategic investment decisions and achieving long-term success in the WA property market.

effectively and make the most of your renovation investments.

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We offer a 15-minute no obligation consultation to existing property investors, first home buyers and small business owners who are looking at property investments, business and asset protection. To Book an Appointment simply click here and pick a time and date.

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How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Unfortunately, 2024 appears to be another tough year for Australian renters who endured financial strain previously. December 2023 marked a historic low in available rental listings, and the early weeks of 2024 witnessed median rents surpassing $600 for the first time. In this article we look at the latest property investment hotspots.

Although certain analysts suggest that a decrease in migration and more stable interest rates might alleviate rental growth this year, rental stress remains a significant challenge for many Australian tenants. According to CoreLogic, median rent now consumes 31% of the average income, surpassing the threshold for rental stress.

On the flip side, rental income is on the rise for property investors. Despite some landlords facing restrictions that curtail their earning potential, rental yield has climbed. Data from Your Investment Property Magazine reveals that certain Australian suburbs have even reached an annual rental yield of over 15%.

When it comes to comparing rental yields among capital cities, the choice is evident. According to Domain’s data, Sydney has experienced the most significant surge in both unit and house gross rental yields over the last 12 months, with an impressive increase of 29.5% and 13.2%, respectively.

“Unit rents reached a record high after the steepest quarterly and annual increase ever recorded in the city,” according to Domain’s chief of research and economics, Dr Nicola Powell. For houses, gross rental yields are at their highest point since December 2020 in Sydney, following the fastest annual surge on record.

Melbourne came in second, with unit yields at 23.6 per cent, and houses at 14.4 per cent, while Perth is in third place for units at 10 per cent and Brisbane third for houses at 12.9 per cent.

Unit yields:

• Brisbane: 9.7%
• Darwin: 8.4%
• Hobart: 8.3%

House yields:

• Hobart: 10.7%
• Darwin: 6.8%

In the current market, the rental landscape in various suburbs presents a mixed picture. The top-performing area nationwide is Bass Hill, situated in Sydney’s Canterbury-Bankstown region, witnessing an astonishing annual increase in weekly unit rents of 62.8%.

What gives a suburb strong rental yield?

Rental yield is how much income a property generates relative to its value. It’s calculated by dividing the annual rental income a property generates by its market value.

When the value of a property increases dramatically, the rental yield can decrease, because the rental income is smaller relative to the property value, but that doesn’t mean the property is earning any less.

Therefore, rental yields tend to be higher in areas where the demand for rent is higher than the demand for owner occupied property. Take Tom Price in the Pilbara region of WA, where the average rental yield for houses was 15.2% in January ’24. In November and December of 2023, Tom Price had the highest yields for houses in the nation, dropping to third in January.

Pilbara is one of Australia’s biggest mining regions, with huge deposits of minerals like iron ore. Demand for property is therefore more transient, as miners come and go. From April ’23 to January ’24, the median house price in Tom Price went from $652,500 to $640,000, decreasing 1.9%. Over the same period, median rents went from $1,775 to $1,875, up 5.6%.

The majority of the suburbs in the top 100 lists lie outside of the capital cities of the respective states. For houses, only Anketell (Perth, 17th), Brisbane City (69th), Darwin City (76th), Gray (Darwin, 91st) and Moulden (Darwin, 94th) made the cut from capital city statistical divisions.

For units, as you’d probably expect, the capitals made a slightly better showing. There were 14 Greater Perth Suburbs, 11 from Darwin, three from Melbourne and two from Brisbane, with one each from Canberra and Adelaide that made the list. That still means well over half of the top rental yield suburbs came from regional markets.

Source: Domain, CoreLogic

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Australian property prices rose 0.6 per cent in March, capping off a solid first quarter of 2024 in which median home values lifted about $12,000. Property prices rise 0.6 per cent in March as Perth heats up. Every capital city except Darwin saw median dwelling values rise over the past month, CoreLogic figures published on Tuesday showed.

Perth led the way at 1.9 per cent, followed by Adelaide (1.4 per cent) and Brisbane (1.1 per cent). Australia’s largest capital Sydney experienced more moderate growth of 0.3 per cent against higher dollar valuations.

Home values rose again in March, extending the streak to 14 months, according to new data.

CoreLogic said its national Home Value Index rose 0.6 per cent in March, for a quarterly total of 1.6 per cent. Since declining 7.5 per cent between April 2022 and January 2023, the national Home Value Index (HVI) has increased 10.2 per cent, or, in dollar terms, by about $71,832, rising to new record highs each month since November last year.

Change in property values

City / Region	Monthly (%)	Quarterly (%)	Median Value
Sydney	0.3%	0.9%	$1,139,375
Melbourne	0.0%	-0.2%	$778,892
Brisbane	1.1%	3%	$817,564
Adelaide	1.4%	3.3%	$734,173
Perth	1.9%	5.6%	$703,502
Hobart	0.2%	0.1%	$649,097
Darwin	-0.2%	0.4%	$498,433
Canberra	0.4%	0.8%	$838,976
Combined Capitals	0.6%	1.5%	$848,475
Combined Regional	0.6%	1.8%	$620,032
National	0.6%	1.6%	$772,730

 House prices beat expectations

Median values rose 1.6 per cent over the quarter nationally, up from 1.4 per cent over the final three months of 2024 as the property market continues to shrug off the effects of higher interest rates on borrowers.

CoreLogic’s national home value index has now increased 10.2 per cent, or $71,832, since falling 7.5 per cent between April 2022 and January 2023.

CoreLogic said that markets are continuing to “traverse the high interest rate and high cost-of-living environment better than most would have expected” amid ongoing levels of high housing demand.

Though the pace of the rebound since April 2022 has moderated, with Lawless saying the market has not been immune from broader economic conditions. “Rate hikes, cost-of-living pressures and worsening housing affordability are all factors that have contributed to softer housing conditions since mid-last year,” Lawless said.

Perth property prices surge

Property prices have risen an astonishing 5.6 per cent over the March quarter in Perth, taking median values to $703,502 in the past month.

It’s being caused by elevated levels of migration, CoreLogic said, with net overseas migration of 18,122 in the September quarter of 2023, which is several times higher than the decade average of 4639. “The extreme flip in demographic trends has delivered a significant positive demand shock across WA housing,” CoreLogic said.

Cheaper properties lead upswing

Another interesting part of the upswing in early 2024 is that properties on the lower end of the value scale are driving faster growth than more expensive homes.

Lower-quartile home values are now up 3.1 per cent in the first quarter of this year compared to 0.7 per cent for the most expensive dwellings. That’s a flip from last year, where more expensive properties in the upper quartile of the value distribution drove growth.

Additionally, housing affordability issues have seen lower-priced homes lead the growth, with values for higher-priced homes increasing by less.

“With housing affordability becoming more challenging and borrowing capacity lower than a year ago, it’s no surprise to see demand being skewed towards the middle-to-lower end of the value spectrum,” Lawless said. Nonetheless, home sales are up in numbers as well, by an estimated 3.7 per cent in the first quarter compared to the decade average for this time of year.

Source: CoreLogic

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

The sizeable sums needed to secure and service a loan for a median-priced house are the result of 11 cash rate rises since May last year, which have slashed buyer borrowing power faster than prices and increased mortgage costs. With more rate rises still expected this year to slow down inflation, the biggest issue in the housing market is mortgage stress. We look at how much you need to earn to be able to afford a housing loan as well as what income levels are needed to avoid mortgage stress.

Although the house prices on the west coast continue to rise new Canstar modelling shows a Sydney buyer who purchased a house for about $1.46 million – the median price for the March quarter on Domain data – would have needed a gross annual income of $255,600 to have sufficient borrowing capacity to purchase with a 20 per cent deposit.

That is $50,700 more than was needed the previous March, despite a sharp fall in house prices since, and more than triple the $78,800 median pay of full-time employees last year, according to the latest Australian Bureau of Statistics figures. Average full-time earnings sit at $94,000.

Sydney house hunters need to earn more than $250,000 to borrow enough to purchase a typical home, while their Melbourne counterparts need almost $180,000, making homeownership near impossible for the average Australian. Brisbane and Perth buyers needed almost $145,000 and $124,000 respectively, requiring a pay rise of more than $27,000 from the previous year.

That is $50,700 more than was needed the previous March, despite a sharp fall in house prices since, and more than triple the $78,800 median pay of full-time employees last year, according to the latest Australian Bureau of Statistics figures. Average full-time earnings sit at $94,000.

The table below sets out the data applicable to Perth.

How much income you need to purchase a unit in Perth and service the loan

	March 2022	March 2023	Change
Median house price	$364,054	$360,428	-$3,626
Loan amount (80% LVR)	$291,243	$1,167,885	-$107,469
Gross annual income (Single) required to…
Have sufficient borrowing power	$65,200	$78,500	$13,300
Avoid mortgage stress	$49,200	$70,200	$21,000

How much income you need to purchase a house in Perth and service the loan

	March 2022	March 2023	Change
Median house price	$633,762	$672,177	$38,415
Loan amount (80% LVR)	$507,010	$537,742	$30,732
Gross annual income required to…
Have sufficient borrowing power	$93,900	$123,900	$30,000
Avoid mortgage stress	$85,600	$130,800	$45,200

Notes:

The modelling assumed a single buyer purchased in March, when the cash rate was 3.6 per cent, with a 20 per cent deposit and no existing equity. It shows the income required to secure a 30-year loan with a variable mortgage rate of 6.13 per cent, and a 3 per cent interest rate serviceability buffer.

The cash rate has since lifted to 3.85 per cent and could rise again when the Reserve Bank meets on Tuesday.

Canstar group executive Steve Mickenbecker said the modelling showed how challenging the market was for first home buyers, and noted the situation had likely worsened since earlier this year – given another increase to the cash rate and an uptick in property prices. In Perth, a buyer would need a $30,000 increase in income as at March 2023, when compared to purchasing a home in 2022 – the average  household income required in 2022 was $93,900 compared to $123,900.

“For single first home buyers, 99 per cent of them are going to be excluded from buying a house at the median price,” Mickenbecker said.

AMP Capital chief economist Dr Shane Oliver said first home buyers would find it almost impossible to get into the market at the median house price. “Prices are still down from their highs, so that is helping, but the roughly doubling interest rates are working against that,” Oliver said. “That means even if you have a 20 per cent deposit saved up, you’d be struggling to buy at the median.”

“Tax data shows that only 1 per cent or 2 per cent of Australians earn above $180,000 a year, so you’d have to be relying on having two high-income earners, or alternatively, relying on the Bank of Mum and Dad to be able to buy,” he said.

Oliver said with inflation at 6.8 per cent, there was likely another rate rise to come on this month, or next month. The Agency’s Catherine Murphy said first home buyers had been able to stretch themselves to buy at close to the median house price, when interest rates were at record lows, but were now priced out.

Source: Canstar & smh.com.au

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

REIWA’s 2023 property market quarterly update estimates Perth house prices will remain steady in the first half of 2023, while rent prices will continue to increase. “Perth’s median house price increased marginally in the first quarter of the year, rising 0.9 per cent from $540,000 at the end of 2022 to $545,000 at the end of March,” REIWA CEO Cath Hart said. If you are an investor then the prospects for capital growth are stronger in the West than the East coast.

The local market has shown remarkable resilience in the face of 11 interest rates rises, backed by strong demand and affordable prices.  It is expected that prices will continue to hold firm in the next quarter even if there are one or two more rate rises. However, should we see a period of interest rate stability or even cuts, we would expect to see consumer confidence rise, boosting activity and prices. Low price growth is still a strong possibility across the remainder of 2023.

It is a different story in the rental market, with prices up 5.8 per cent since the end of 2022. “This has been fuelled by declining supply and increasing demand and more rent price increases are expected this year,” Ms Hart said.

Perth sales market

Properties continued to sell quickly in the first quarter of 2023, with good numbers at home opens and many properties still receiving multiple offers. Homes sold in a median 13 days in March,” Ms Hart said.  The number of listings for sale hit a twelve year low of 6,931 at the end of December 2022 and we have seen the number of properties for sale drop even lower than that recently.

Properties are still coming to the market at good numbers, and at levels higher than pre-COVID, so the low number of listings on www.reiwa.com is more a reflection of the speed of sales, rather than a lack of properties.

Demand for housing in WA is expected to stay relatively strong, supported by population growth. WA’s population grew 1.8 per cent in the year to September 2022 and the State Government’s recent Mid-Year Budget review forecast further growth of 1.5 per cent in 2022/23 and again in 2023/24.

As more people arrive in WA, this will maintain the demand for housing and keep listings low. And with such tight rental conditions, more people will look to buy rather than rent.  Long-awaited building completions remain a wild card for both sales and rental markets.  As more COVID building-incentive new homes are completed, there may be an easing in both markets, but this will be offset by population growth according to the REIWA.

New home approvals have also been falling, so this will also affect housing supply in the future, which will result in increases in prices.

Perth rental market

2023 has already proved to be challenging for tenants. The vacancy rate was 0.7 per cent in January, February and March. Homes are leasing in a median 14 days and property managers are still seeing queues at home opens and receiving multiple applications. Declining supply and increasing demand are at the heart of the issues the rental market is facing. Property investors are not entering the market in the post COVID era with 800 fewer rental properties available now than at the start of the year and a decline of 19,200 since January 2021. Although there is interest from Eastern State investors who see value in the WA market, it hasn’t been enough to replace the properties that have been lost.

The proposed changes to the Residential Tenancies Act (RTA), and calls for other reforms such as rent capping and limiting when increases can take place, remain a concern for  the remainder of 2023.

According to the REIWA, he vast majority of rental stock in WA is owned by small, private investors and they are listening to the debate over rental reform in various states and they’re nervous about some of the changes being considered.

There are already significant pulls to exit the WA market with 10 interest rate rises, a bulk of mortgages set to switch from fixed to variable-rates this year and a broad recovery in WA home values post-COVID.

 Regional WA

Market conditions across regional WA are expected to remain strong in 2023. All regional centres saw median price growth in 2022 although, like Perth, the rate of growth has been slowing. Regional centres are also experiencing low vacancy rates and rising rent prices and this will continue. Regional centres will also benefit from population growth. It won’t just be Perth that feels the effects of population growth, particularly interstate and overseas immigration,” Ms Hart said. Some migrants will move to the regions, which will support these property markets as well.

WA Rental Reforms – What this means for Landlords and Tenants

With the announcement of reforms to the Residential Tenancies Act 1987 last week, there are plenty of questions about what the reforms will mean in practice, how they will be implemented, and when. We have compiled a summary of the reforms and the most Frequently Asked Questions.

What is the Residential Tenancies Act?

The Residential Tenancies Act 1987 (or RTA) is the law that outlines the rights and responsibilities of tenants and landlords in Western Australia, as well as providing the process for settling disputes.

Why is the RTA important now?

Delays in new home building completions caused by labour and material constraints over the past couple of years have meant the supply of housing has just not kept up with demand. Perth’s vacancy rate is currently sitting at 0.7% making it incredibly difficult for tenants to find a home. For owners, soaring interest rates and invasive regulatory changes are causing them to leave the rental property market, with more than 19,200 rentals lost across WA since January 2021. By contrast, more than 70,000 people have chosen to make WA their home since then.

It’s been more than 10 years since the State’s rental laws have been reviewed and a lot has changed. After a three-year review, the State Government has announced an update to the RTA that if feels will balance the demands of both renters and landlords in a challenging environment by providing greater flexibility for prospective tenants, as well as investor certainty and ownership control.

What has the State Government announced?

After much consideration, the State Government has announced the following proposed changes to the RTA:

• no changes to no – grounds terminations
• prohibiting the practice of rent bidding, with landlords and property managers unable to pressure or encourage tenants to offer more than the advertised rent
• reducing the frequency of rent increases to once every 12 months
• tenants will be allowed to keep a pet or pets in a rental premises in most cases
• tenants will be able to make certain minor modifications to the rental premises and the landlord will only be able to refuse consent on certain grounds
• the release of security bonds at the end of a tenancy will be streamlined, allowing tenants and investors to apply separately regarding how bond payments are to be disbursed
• disputes over bond payments, as well as disagreements about pets and minor modifications will be referred to the Commissioner for Consumer Protection for determination

What do these changes mean for me?

The State Government believes a balance has been struck between the need for reform and the need to incentivise investment that builds rental supply in Western Australia. For both renters and prospective renters, these changes will allow for a more modern lease, with more freedom and flexibility to choose how they can turn a house into a home.

For investors, these changes will not unduly impact the rights of the property owner. These proposals will also draw a line under tenancy reform in Western Australia, which will encourage certainty for investors currently in the market, as well as prospective investors.

Source: REIWA

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Western Australia’s State Budget this year has laid out several policies that would support the local housing market.

Among the policies is the amendment to Keystart’s Urban Connect pilot program, which will now include one-bedroom apartments.

The program, which provides Urban Connect Home Loans, creates an opportunity for buyers to break into the market without having to shell out a huge amount for a deposit. Urban Connect was first rolled out last year, with the aim of supporting medium and high-density living. The program was originally intended for buyers gunning for apartments with at least two bedrooms.

Housing Minister John Carey said the expansion of the program’s eligibility shows the government’s commitment to provide support would-be buyers in the state. Meanwhile, there are talks for a new Keystart loan program that will help customers secure pre-sale off-the-plan properties.

Tax reforms and incentives

Also included in the state government’s commitments this year is delivering tax reform and incentives to boost housing and land supply.

The government will set aside $33m to fund the off-the-plan transfer duty concession that will run until the end of June 2025. “We continue to deliver a range of important tax reforms and incentives that will provide a boost to housing and land supply, while continuing to work with industry to cut red tape,” Mr Carey said.

“Our commitment in this Budget to extend the off-the-plan transfer duty rebate and lift the threshold for exemptions and concessions is a clear incentive to build new apartments and provide more opportunity for Western Australians to downsize or buy their first home.”

Here are the changes to the thresholds for exemptions and concessions:

• 100% concession for properties valued up to $650,000 (up from $500,000).
• Phasing down to a 50% concession for properties valued at more than $750,000 (from $600,000)

These changes build on the state’s measures to boost housing supply throughout Western Australia, building on the $80m Infrastructure Development Fund, which removes headworks barriers to new housing developments. The state government is also delivering $55m in strategic water and wastewater infrastructure to unlock more than 15,000 new homes across Perth.

Off-the-Plan Transfer Duty Rebate

The extension of the Off-the-Plan Transfer Duty Rebate for another two years and changing the incentive from a rebate to a concession is a direct response to UDIA WA advocacy and will provide certainty for both developers and buyers looking to purchase an apartment off-the-plan.

The Off-the-Plan rebate was available for people who enter a pre-construction contract to purchase a new residential unit or apartment off the plan. Making the rebate a legislated duty concession means that purchasers will have their stamp duty concession recognised up front at contract stage rather than having to pay the duty and then claim the rebate upon settlement.

For apartment projects in particular, developers rely heavily on presales to make a project viable, so these measures will assist in building much needed consumer confidence and attracting investors to this sector of the market. Combined with already announced land tax concessions for Build-To-Rent which are now supported by recent Federal Government taxation changes, future supply of rental accommodation is also looking brighter following the budget announcements.

Keystart

This week’s budget makes an ongoing Investment in social housing while also continuing to use Keystart as a lever for the provision of more affordable housing.

Keystart is a low deposit lender aimed at providing an affordable pathway to home ownership in WA.

Amendments will be made to Keystart’s pilot ‘Urban Connect’ program, which boosts housing at the affordable end of the market and supports infill development, which will now also enable customers to secure pre-sale off-the-plan properties.

Other small wins in the budget include investment in attracting more skilled migrants to the building and construction sector and further investment in social housing and homelessness.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

If you’re looking to invest in the Aussie property market, here are some key points to consider at any age. If you’ve been saving for a while and feel you’re ready to purchase your first investment property, it’s worth ensuring you’re across some important points so you can make a well-informed decision.

Property prices can go through major swings that can occur with little warning, so while property values might go up, keep in mind they might also go down, which could see you breakeven or even incur a loss depending on how long you hold on to the property for.

1. Have you set a budget within your means?

You may be looking at an investment loan term of 25 or 30 years, depending on the size of the deposit you’ve saved. And, as this may be one of the biggest debts you’ll ever take on, it’s important to prioritise any other financial goals you might have before jumping into anything. If you already own a property, it may also be possible to access the equity you have in it to secure additional finance from your lender. Here’s a snapshot of some of the upfront and ongoing costs you may come across.

Upfront costs

• Deposit (generally around 10% to 20% of the purchase price) unless you’re paying outright
• Loan application fee (a one-off payment to your lender covering basic admin)
• Lender’s mortgage insurance (which you may need if your deposit is less than 20%)
• Government charges (stamp duty, mortgage registration and transfer fees)
• Legal and conveyancing costs (which will vary depending on the solicitor or conveyancer)
• Building, pest and strata inspection fees.

Ongoing Costs

• Loan repayments and interest charges
• Strata fees (for communal properties)
• Council rates, Water rates, Insurance (for the building, contents and you as a landlord)
• Repairs and maintenance costs
• Property management fees
• Vacancy costs if you don’t have tenants for a period of time
• Other charges, such as land tax.

2. Have you looked at your credit report lately?

If you’ve got a credit card, mobile phone plan or utility account, there’s probably a credit reporting agency out there that has a file with your name on it.  Credit providers give information about you to credit reporting agencies and they also access this information to determine whether they want to lend to you. With that in mind, before you start inspecting properties, be sure to check your credit history, as a tarnished credit report could affect your ability to get approval on a loan.

3. Have you researched where to buy and what to buy?

What you decide here will impact the money you could make in both the short and long term. When you’re doing your research, things to investigate might include:

• What properties are selling for in the suburbs you’re looking at
• Whether these suburbs have price growth potential
• If there are proposed developments nearby that could affect prices
• Whether you’ll need to renovate and if you have the extra funds to do so
• What average rental returns and vacancy rates are like in these areas
• Whether there are local amenities, such as schools, shops and transport nearby.

4. Have you thought about who’ll manage the property?

If you’re time poor or located a long distance from your investment property, another thing you’ll need to think about is appointing a property manager. Note, this this will come at a cost of approximately 7% to 10% of your total rental income each week1. Some of the things a property manager will take care of include:

• Advertising the property
• The screening of potential tenants
• Before and after property condition reports. Routine inspections
• How and when tenants pay the rent
• Maintenance and repair issues
• Responding to complaints/evictions.

5. Are you across your legal obligations?

While property managers can help out in a variety of areas, as a landlord you will still need to be aware of your legal obligations. There are various responsibilities that apply to landlords before, during and when ending a tenancy. These can differ depending on which state in Australia the investment property is located.

6. Have you investigated potential tax deductions?

When you own an investment property, you can often claim a tax deduction on a variety of expenses related to the property during the time that it’s rented out, or available for rent.

Such items include but aren’t limited to things like:

• Advertising costs
• Property management fees
• Borrowing expenses, including loan interest charges and fees
• Council rates, land tax and strata fees
• Building depreciation and the loss of value over time in fittings and fixtures like ovens, dishwashers, carpets and hot water systems
• Repairs, maintenance, pest control, cleaning and gardening costs
• Building and landlord insurance
• Phone costs and stationery
• Accounting and bookkeeping fees.

Note, travel undertaken to inspect the property is generally no longer a claimable expense in Australia.

7. Are you across other tax implications?

How negative gearing can reduce what you pay in income tax

If your property is negatively geared (which means the interest and other costs you incur are more than the income your investment property produces), the loss can reduce the amount of tax you pay on your earnings (i.e. your salary) at tax time.

To give you an example, say you earn a salary of $70,000 and a rental income of $20,000 over a 12-month period. If your net rental property expenses are $35,000, your rental property loss will equal $15,000 for the year, which means you’ll only pay tax on $55,000 of your salary.

If your property is positively geared on the other hand (meaning the rent you’re generating is more than the cost of owning the property) you’ll have to pay tax on the net income the property generates.

When capital gains tax is payable

If you sell your investment property down the track and make a profit, capital gains tax may be payable. The good news is, the price you paid for the property (including buying and selling costs, like stamp duty, legal fees and the real estate agent’s commission) will reduce the amount considered as ‘profit’. In addition, if you’ve owned the property for at least 12 months, 50% (rather than 100%) of the profit you make will be subject to capital gains tax.

You’ll also need to keep records of the date and costs of buying the property for capital-gains-tax purposes, and anything regarding significant changes that may take place, such as repairs, improvements or should you decide to subdivide and sell part or all of the property down the track. Remember that keeping these records will help make sure you don’t pay more tax than you need to.

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.