For years, the Australian property narrative has been monopolised by the eastern capitals. But as affordability in Sydney, Brisbane, and Melbourne becomes increasingly strained, a dramatic shift is underway. All eyes are now turning to the west, where Perth has emerged as the nation's most dynamic and compelling property market.
Unprecedented Growth in the West
The latest data from Cotality's Home Value Index confirms Perth is setting the national pace. Dwelling values surged a remarkable 1.9 per cent in October alone, contributing to an impressive annual growth figure of 9.4 per cent. This performance isn't just broad-based; it's exceptionally strong in specific areas. For instance, in the Belmont-Victoria Park Statistical Area Level 3, home values skyrocketed by 13.6 per cent over the last 12 months.
However, the real story of Perth's strength lies in its apartment sector. According to Cotality, Perth unit values have soared by 11.2 per cent over the past year. This surge reflects a major shift in buyer and investor demand towards the accessible, connected lifestyle that modern apartment living provides.
The Compelling Investment Case
This powerful growth is attracting savvy investors seeking superior returns that are becoming rare on the east coast. The numbers speak for themselves: gross rental yields for Perth dwellings are sitting at a robust four per cent, while unit rents have climbed 6.9 per cent annually. This combination of high rental income and nation-leading capital growth creates a formula for total return that is increasingly difficult to find elsewhere in Australia.
What makes Perth's trajectory even more compelling is the looming national apartment shortage. The latest Urbis Apartment Essentials National Snapshot report reveals a stark picture. The number of new apartments being completed across Australia is set to remain drastically low. Urbis projects apartment completions will be 12,650 fewer apartments per year from 2025-27 than the average between 2016 and 2020.
Demand Meets Scarcity: A Perfect Storm for Growth
This supply crunch, driven by sustained high construction costs and labour shortages, will inevitably intensify competition for available properties. Aspiring apartment buyers may need to secure a new dwelling off-the-plan to secure a place in a new development.
In Perth, demand is already robust. The Urbis report shows a healthy sales rate, with 13 per cent of available apartment stock being snapped up in a single quarter. When you place this strong, consistent local demand against a backdrop of national scarcity, the forward outlook becomes clear. More buyers will be competing for fewer properties, putting sustained upward pressure on values for the foreseeable future.
For those seeking capital growth, investment value, and a vibrant place to call home, the west is no longer just a market to watch. It has firmly established itself as the market to be in.
