Why Invest in Perth Property?
Strong Government Commitment
In addition to the $1.66b committed to the Perth City Deal, the State Government has committed over $13.6b of transport related infrastructure over four years, $3.8b in economic infrastructure and diversification initiatives and $3b towards climate change action and decarbonizing initiatives over four years.
Strong Private Sector Investment
The commitment to infrastructure and a strong economy is fuelling significant investment in a diverse range of property assets by private investors. In the City of Perth $772.44m worth of Development Applications and $899.03m in Building Approvals were lodged and approved in the 2022/23 FY.
A United Driving Force, Population Growth
Greater Perth’s population is expected to reach 3.2 million by 2032-33 and Perth will become Australia’s fourth largest capital (Centre for Population).
The City of Perth is actively working to accelerate its density aspirations, setting a target to increase its residential population to 55,000 residents by 2036 under the City's Local Planning Strategy, with a long-term, aspirational target of 90,000 people by 2050. Project 90K, a 2018 report commissioned by the Property Council of Australia, the increase to 90,000 residents within the City of Perth boundary will result in a demand for:
- Childcare and schools: including 1,000-plus extra childcare spaces, 30 playgrounds, up to three new primary schools and two high schools.
- Dining and entertainment: nearly 27,000 young people aged between 20 and 34 would be looking for dining and entertainment options, including gym facilities and an aquatic and recreation centre.
- Aged care and retirement living: an additional 5,000 retirees would need aged care and retirement living options, as well as a new library.
- Services: These new residents will require services such as healthcare, retail, personal care services, veterinary, storage and transport to sustain them, broadening the investment opportunities.
The opportunity for smart investment across a broad range of asset classes will be well-supported.
As the long-term trend of population and economic growth in WA continues, additional apartments will be required to meet the growing demand for city living.
To support the private sector to deliver the housing needed for 90,000 residents, the City is providing financial incentives to developers of residential properties across the apartment, co-living, build-to-rent and student accommodation sectors. These complement the incentives being rolled out by the State Government for housing supply.
The City actively works with key property stakeholders to advocate for changes to policy and legislation that will aid in accelerating population growth and unlock development.
With all three levels of government and advocacy partners collaboratively driving population growth, through strong migration policy, housing stimulus and the reduction of barriers to development, there has never been a better time to invest in Perth.
- 15.6%Office Vacancy Rate
- #1Office Occupancy
Office Vacancy Rate
Perth’s CBD office vacancy rate has fallen to 15.6% (the lowest since 2015), with premium grade vacancy remaining low at just 6.6%.
Source: (Perth’s CBD Office market sees increased demand | The Property Tribune).
#1 Office Occupancy
Perth is leading the nation with its office occupancy sitting at 81%
(Source: Office Occupancy - February 2023 - Property Council Australia)
- 14.7%Retail vacancy rate
- $650Mmajor retail developments
0.6% Perth’s Residential Vacancy Rate
The Perth residential investment market is the most competitive in Australia with a vacancy rate of just 0.6%
Source: Vacancy rates: May 2023 (domain.com.au)
Perth’s gross unit rental yield growth of 4.59% has continued to outpace Sydney (3.15%), Melbourne (3.6%) and Brisbane (4.63%) for the twelve months to March 2023, making Perth a prime opportunity for investors.
- 0.6%Residential Vacancy Rate
- 4.59%Residential Yield Growth
Retail vacancy rate
Perth’s retail vacancy rate dropped to 14.7% in March 2023 from 15.4% in 2022.
(Source: Y Research Retail Tenant Identification Study March 2023)
Of major developments in the pipeline across the City’s retail landscape including Raine Square, Plaza Arcade, Forrest Chase and Yagan Square, Carillon City, Piccadilly Arcade.
The developments focus on food and beverage tenants, flagship stores, entertainment and experiential retail.