Why Is Perth Property Market Booming? Key Factors Driving WA’s Real Estate Surge

 

Introduction

We often hear about property markets slowing down, yet Perth’s is doing the opposite. I’m writing this because the question why is the Perth property market booming isn’t just a catch-phrase: it’s a real phenomenon that many buyers, renters and investors are trying to understand. We’ll look at what’s driving the growth, what the risks are, and what it means for you.

Rising population and migration

They say demand drives price. In Perth’s case:

  • The city is seeing strong population growth and inbound migration which ramps up demand for homes. 

  • For instance, more people moving into Perth means more people searching for houses or units that tightens supply.

  • A friend of mine who moved from the east coast noted how the rental stock felt much smaller than what he expected, and prices moved quickly.

Relatively affordable compared to other capitals

We know many Australian cities are expensive. Perth, by contrast:

  • Has remained more affordable than places like Sydney or Melbourne.

  • That affordability attracts buyers who might otherwise be priced out elsewhere.

  • In my conversation with an investor, she said: “We chose Perth because we could get more property for less money — and that upside is catching on.”

Tight housing supply

I found this to be a key piece in the puzzle.

  • There are fewer properties on the market in Perth than typical for five-year averages.

  • When supply doesn’t meet demand, you get the classic “seller’s market” scenario: bidding up prices, faster sales.

  • Example: A couple I know tried to buy a unit in North Perth and lost out because things sold so quickly. 

Strong rental market and yields

Investors are paying attention, and for good reason.

  • Rental vacancy rates in Perth are very low, meaning landlords have less competition and tenants fewer choices.

  • Units and houses are offering decent rental yields, making investment properties in Perth look appealing. 

  • Anecdote: One investor told me they’re getting a yield in the 6-7% range in a suburb near Perth’s fringe that’s quite strong relative to some other capitals.

Resource-sector and economic tailwinds

We can’t ignore the macro story.

  • Western Australia’s economy has a heavy resources component; when mining, energy or export conditions are good, that creates jobs and population growth which feeds the property market. 

  • For example, engineering staff relocating for work bring families, need housing another demand point.

  • It’s not just boom times; the expectation of continued growth adds confidence for buyers and investors.

Infrastructure improvements and lifestyle factors

People are moving not just for work, but for lifestyle.

  • Perth offers beaches, sunshine, space and increasingly good transport and town planning. 

  • When suburbs get transport upgrades, schools or shopping centres, those places tend to attract more interest.

  • I spoke with a buyer who chose a suburb outside the CBD because it had a planned train line and was still “affordable” by Perth standards and that made them jump in.

Interest rates and borrowing conditions

While rates are higher than the pandemic low, the story matters.

  • Any expectation of rate cuts or improved borrowing conditions helps boost activity.

  • Confidence that you can borrow and that your repayments won’t be impossible plays into buyers deciding “Let’s buy now.”

  • Example: A first-home buyer told me they felt they had a “window” before things got tougher — and they acted.

Investor activity

I noticed how investors are flocking to Perth for a number of reasons:

  • Because yields are good.

  • Because there’s still perceived upside.

  • Because other markets seem too overheated or risky.

  • This increased investor demand adds another layer to the “why is the Perth property market booming” story.

Buyer psychology and momentum

It’s more than just numbers — behaviour matters.

  • When people see prices rising, they want to buy ahead of further increases (fear of missing out). For example, a buyer in Perth said he regretted not buying a unit when it was slightly cheaper.

  • This kind of momentum can feed itself: more buyers act, which tightens supply further, which drives up prices.

  • My takeaway: part of the boom is driven by fact that people expect it to keep going which changes behaviour.

Risks and cautionary notes

It wouldn’t be honest to ignore the risks.

  • Some analysts are saying that while growth remains, the pace may slow and parts of the market might be more vulnerable.

  • For example: If interest rates go up a lot, or the economy slows, then demand could weaken.

  • I always tell people: don’t assume the boom lasts forever. The story is strong now, but markets shift.

Implications for different types of buyers

What this means depends on who you are:

  • First-home buyers: You may face tighter competition and rising prices, but getting in early might still mean long-term benefit.

  • Investors: Strong rental yields and growth make Perth attractive but you still need to pick the right suburb and manage risk.

  • Home sellers: If you’re selling in Perth, this market gives you leverage. In a few cases I saw houses sell for above asking because buyers were under pressure.

  • My friend who was selling said “I didn’t expect five offers within a week” that’s not typical in slower markets.

Looking ahead: what we should watch

To understand if the boom will continue, here are things I’ll keep an eye on:

  • Listings: If supply grows rapidly, that could ease the pressure.

  • Interest rates: If borrowing becomes much more expensive, some demand might pull back.

  • Population/migration: If fewer people move into the city, demand might soften.

  • Employment and economy: A robust economy supports housing demand; any shocks could ripple through.

  • Suburb performance: Not all areas will boom equally location still matters a lot.

Final thoughts

So that brings me back to the opening question: why is the Perth property market booming? In short: because demand is up, supply is tight, economic conditions are favourable and buyer/investor psychology is pushing things further. If you’re looking into this market, now is a good time to study it — but go in with eyes open. There are strong fundamentals, yet no guarantee of infinite growth.

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