Despite months of successive rate hikes, Perth has outperformed more expensive markets, making the city a destination for property investors in 2023 according to Momentum Wealth.
- Perth property has recorded price gains of 4.13% through 2022, compared to price declines of 6.44% in Sydney and 4.49% in Melbourne.
- Perth is home to five of the nation’s 10 most affordable capital city suburbs.
- Perth has five of the 10 highest yielding capital city suburbs in Australia.
- A strong local economy, overseas and interstate migration and a critical shortage of housing are expected to make Perth an attractive market for property investors in 2023.
Perth (date): Perth’s property market has demonstrated remarkable resilience in 2022, and it will continue to appeal to investors in 2023 according to leading Perth-based property group Momentum Wealth.
Despite eight successive interest rate hikes since May 2022, Perth’s property market has continued to record annualised price gains while retaining its position as one of Australia’s most affordable state capitals.
Data from PropTrack (REA Group) confirms that property values in Perth have risen 4.13% over the 12 months to December 2022[1], outperforming many more expensive capital cities including Sydney (down 6.44%) and Melbourne (down 4.49%).
Despite the capital growth, Perth’s citywide median value of $560,798 is vastly more affordable than Sydney ($1,025,684) or Melbourne ($759,496)[2].
Not surprisingly, CoreLogic’s Best of the Best 2022 Report notes that Perth is home to five of the nation’s 10 most affordable capital city suburbs.
The combination of growth plus affordability is highly appealing to investors. The CoreLogic study found over half Australia’s highest yielding suburbs (for rent returns) are located in Perth, where yields can be substantially higher than other capital cities.
Mr Damian Collins, Managing Director of Momentum Wealth and former President of the Real Estate Institute of Western Australia (REIWA), said, “It is testimony to the strength and appeal of the Perth market that the city has continued to deliver capital growth plus outstanding rental yields at a time when more expensive markets are experiencing declining values and lacklustre yields.
“Perth is also one of Australia’s most affordable capital cities, giving property investors the rare trifecta of value buying, healthy yields and capital growth.”
Perth attractive to investors in 2023
