Business News

The capital growth potential of Western Australia’s undersupplied residential sector, coupled with its relative affordability compared with other states, is proving attractive for an increasing number of investors.

WA has experienced an influx of eastern states capital into its housing market during the past few years, and investment from that cohort has remained strong.

Australian Bureau of Statistics data shows the value of home loans to investors grew by 2 per cent in September this year, when the value of owner-occupier loans dropped by 0.1 per cent.

The latest data from the Urban Development Institute of Australia WA showed the proportion of investors in WA’s housing market has ballooned to 62 per cent of all residential land sales in Perth’s greater metropolitan area.

This compares with 28 per cent this time last year.

As UDIA WA chief executive Tanya Steinbeck put it, the state’s record low rental vacancy rates, strong population growth, low unemployment rate and and solid economic growth all made it an attractive place to invest.

To read the article in full including comments from UDIA WA CEO Tanya Steinbeck and further results from the September 2023 Urban Development Index, click here.