This is Why Perth is So Attractive Right Now!

It’s no surprise that many Australians, especially property investors, love Perth. Located on the west coast of Australia, this vibrant city has become a beacon of economic stability and opportunity.

Today, Perth stands as Australia’s fourth-largest capital city by population and is one of the fastest-growing cities in the country. But there’s more to Perth’s property appeal than just population growth.

Why Investors Are Flocking to Perth

1. Perth Has the Highest Median Household Income in Australia

One of the key factors making Perth an attractive property market is its high household income levels. Perth boasts the highest median household income in Australia, making it wealthier than any other state.

To put it into perspective, someone living in an $800,000 house in Perth may earn more than someone living in a $3 million house elsewhere in Australia. This suggests:

• A strong economic base

• Higher disposable income for residents

• Better housing affordability compared to other capital cities

In short, Perth offers high incomes while maintaining a reasonable cost of living, making it a prime location for property investment.

2. Record-Low Vacancy Rates Mean Strong Rental Demand

Perth currently has the lowest vacancy rate in Australia, indicating high demand for rental properties.

For property investors, this means:

• Lower risk of rental vacancies

• Steady rental income potential

• Strong demand from tenants looking for housing

With rental properties in short supply, Perth’s rental market is expected to remain competitive, offering investors consistent returns.

3. Perth Holds a Unique Advantage with a Budget Surplus

While other state governments across Australia are facing budget deficits, Western Australia enjoys a budget surplus.

This financial strength translates to:

• Stable infrastructure investment

• Better economic resilience

• Continued property market growth

This economic stability adds to Perth’s investment appeal, giving both property buyers and investors confidence in the market.

4. Perth’s Property Market Has Transformed Since 2014

Historically, Perth’s property market was known as a "boom or bust" market, but this has changed significantly since mid-2014.

Today, tight supply constraints and limited new developments have helped:

• Stabilise property prices

• Support consistent capital growth

• Improve long-term investment potential

These factors suggest that Perth’s real estate market is no longer just a mining-driven boom cycle, but rather a sustainable and stable investment environment.

5. Supply Constraints + Strong Demand = Future Growth

With Perth’s population growing, housing demand remains strong, but limited new developments are keeping supply regulated. This combination of strong population growth, economic stability and attractive living conditions creates a favourable property investment environment, offering long-term capital growth potential.

Final Thoughts: Why Perth Is a Smart Investment Choice

Perth is no longer just a "boom and bust" market, it has evolved into a stable, high-growth investment destination. With its strong economy, high household incomes, low vacancy rates, and controlled property supply, Perth is an ideal location for property investors seeking sustainable returns.

Whether you’re a first-time investor or expanding your portfolio, Perth’s property market offers a unique mix of affordability, stability, and high rental demand - making it one of the best cities to invest in Australia today.