Property in Perth

The Australian and Western Australian Governments, together with the City of Perth have recently announced the Perth City Deal, with a value of $1.5 billion of public and private investment. The City Deal will see the addition and expansion of three university campuses in the Perth CBD, the delivery of the CBD Transport Plan and a number of other high value infrastructure projects to capitalise on the natural, historical and cultural strengths of Perth. The ten-year City Deal is a plan for Perth’s future to provide vision and certainty, making Perth a compelling destination for new investment in the property sector.

Further to this, the strong management of the COVID-19 pandemic to date, renewed migration interest, along with increased residential property demand, has resulted in a record 40-year low residential vacancy rate creating new opportunities in property asset classes for investors.

In recent years there has been significant investment in both the development of new offices, the refurbishment of existing property stock and the emergence of vibrant co-working facilities to suit all business needs.

With the population expected to reach 3.5 million by 2050, Perth will become Australia’s third largest capital (Infrastructure Australia 2018)

This growth is fuelling significant investment in property by both public and private investors. A new billion-dollar partnership between the Commonwealth Government, WA Government and the City of Perth has been finalised, unlocking economic benefits and opportunities for the Perth CBD. The $1.5 billion City Deal will bring government and private investment into the CBD creating almost 10,000 jobs.

The City of Perth is looking to accelerate its density aspirations, more than doubling its residential population to 90,000 people by 2050. According to Project 90K, a 2018 report commissioned by the Property Council of Australia, the addition of 90,000 residents within the City of Perth boundary will result in a demand for:

• Childcare and schools: including 1,000-plus extra childcare spaces, 30 playgrounds, up to three new primary schools and two high schools.
• Dining and entertainment: nearly 27,000 young people aged between 20 and 34 would be looking for dining and entertainment options, including gym facilities and a potential aquatic and recreation centre.
• Aged care and retirement living: an additional 5,000 retirees would need aged care and retirement living option, as well as a new library.
  
  This projected growth and development pipeline presents a great opportunity for investors and future residents to make their move to Perth.

High liveability

Over the past 10 years, Perth has consistently featured in the top global city rankings for liveability and quality of life with consideration for stability, access to education and health care, and the quality of infrastructure and environment.

Significant government and private sector investment

The WA economy is expected to grow by 1.25% in 2020/21 (Our State Budget 2020), with resources projects in the development pipeline valued at an estimated $140 billion (Department of Mines, Industry Regulation and Safety 2021), household consumption is increasing, and consumer confidence is rebounding. In addition to the $1.5 billion committed to the Perth City Deal, the Commonwealth Government has committed over $1.1 billion of transport related infrastructure. Over $5 billion of major developments are proposed, approved or under construction by both the public and private sectors in the City of Perth Local Government Area.

Rise of prime property in Perth

Prime property prices in the top 5% of the market have grown by 2.2% in 2020 (Knight Frank 2020). The value proposition for prime property in Perth is significantly cheaper than other capital cities in Australia, with US$1m able to buy 133 sqm of prime property in Perth compared to 57 sqm in Sydney and 109 sqm in Melbourne providing value and space to grow your business (Knight Frank 2020).

Reasons to Think Perth
Commercial Property

Improved office vacancy and adaptability

Perth’s CBD office vacancy rate has fallen to 17.95% in July 2020 (the lowest since 2015) with trends of building fit-out, lower rates of sub-leasing and attraction of longer-term tenants all pointing to a revitalised Perth office market.

The growing presence of vibrant co-working and serviced office providers is also adding an innovative resiliency to the Perth commercial property sector. Large corporates are becoming the dominant tenants in flexible and co-working office spaces as the appetite for flexibility grows. According to an article published by PropertyHQ it is predicted that by 2030, up to 30% of all office real estate will be classed as “flexible”.

CBRE reports the flexible workspace industry has grown by almost 300% across Australia since 2013 occupying some 193,000sqm of space across Australia’s six major cities. The footprint of co-working and flexible workspace in Perth is approximately 14,000 sqm as of 2019.

Make the smart move into the City of Perth.

View co-working spaces in the city

or find your new office here:

Reasons to Think Perth
Residential Property

Lower residential vacancy

The Perth market is now absorbing recently added rental stock with residential vacancy in wider Perth falling to 0.8% in December 2020, the lowest level recorded in 40 years (WA Today 2020). As the long-term trend of population and economic growth in WA continues, additional apartments will be required to meet the growing demand for city living.

Relative value compared to other capital cities

The median value for an apartment in Perth in 2020 was $347,585, compared to $729,840 in Sydney and $569,6577 in Melbourne. The median house price of $563,214 in Perth is also significantly lower than Sydney ($1,211,488) and Melbourne ($936,073) (Domain 2020).

Residential rental yields

Perth’s gross residential rental yield growth of 4.4% has continued to outpace Sydney (2.9%) and Melbourne (3.0%) for the first quarter of 2021 (Corelogic 2021), making Perth a prime opportunity for investors.

Make the smart move to live in the City of Perth.

Find your new home here:

Reasons to Think Perth
Retail Property

Retail markets in the City of Perth are undergoing major change

With a wave of major developments in the pipeline, projects worth approximately $450 million that have been completed across Raine Square, Plaza Arcade, Forrest Chase and Yagan Square. With more than $200 million of works at Carillon City approved and Piccadilly Arcade under construction this figure is set to rise. These developments are focused on food and beverage tenants, flagship stores and entertainment options such as cinemas.

The City of Perth is the perfect place to make your mark in the retail sector.

Find your ideal location:

The unprecedented levels of public and private investment have fuelled dramatic changes in Perth and there is no better time to establish or relocate your business here.

If you would like to find out more about how the City of Perth can assist you and your business, please contact us.

The Economic Development Team can provide the following services:

• Guidance – Informing prospective operators about Perth.
• Investment facilitation - Assisting investors to find suitable products in Perth.
• A coordinated approach – Assisting prospective operators to navigate their way through government and guidance for the approvals process.
• Making connections – Facilitating introductions to industry leads.
• Funding – Grants and sponsorships are available.
• Contact the City of Perth to make enquiries: ecodev@cityofperth.wa.gov.au