Perth’s Population Surges with WA’s Strong Economy

Perth is witnessing a remarkable period of growth, driven by a significant influx of residents and a subsequent rise in property prices.

Fuelled by Australia’s strongest state economy and the attractions of a major modern city, including new rail and road infrastructure, it’s easy to see why more families are moving west to take advantage of Perth’s fantastic lifestyle and employment opportunities.

Perth’s Population Surge

According to Australian Bureau of Statistics (ABS) data, in March 2023, Perth’s population reached an unprecedented 2.855 million, marking the most rapid growth nationally. Concurrently, the rental market tightened further, exhibiting a historic low in vacancy rates.

This growth comes on top of existing high levels of inbound migration. Western Australia experienced a population growth rate of 2.3% in 2022, surpassing the national average of 1.9%.

A Scarcity of Residences

Despite ongoing construction, the supply of homes is falling short of the growing demand. This scarcity is contributing to the challenges faced by prospective homeowners and renters, maintaining a steady upward pressure on both property values and rental rates.

Anticipating Future Trends

Cath Hart, the Chief Executive of the Real Estate Institute of Western Australia (REIWA), anticipates the persistence of this supply-demand disparity. She cautions that the trajectory of rising prices and fast property turnovers is likely to endure without a substantial increase in housing availability.

Conclusion

With significant population expansion, a strong economy, and major road and rail infrastructure coming online, Perth finds itself navigating a complex housing landscape, balancing rapid growth against a backdrop of limited housing availability.