Top 4 Growth Factors Driving The Perth Market Up In 2024
Dilleen Property Group 2023
Perth, the vibrant capital of Western Australia, is experiencing a remarkable upswing in its real estate market in 2024. Several factors are fueling this surge, making Perth a hotspot for property investors and homebuyers. In this blog, we will delve into the four primary growth drivers that are propelling Perth's property market into a massive growth cycle.
Inflation: Shift in Housing Affordability
One of the fundamental factors contributing to Perth's property market growth is inflation. Historically, Perth's real estate prices have remained relatively stable for the past decade, making it an attractive prospect for both experienced investors and first-time homebuyers. Properties that were once available in the $200,000 to $400,000 range are now proving to be profitable investments.
Inflation, over the last two to three years, has stimulated the cost of building materials, such as bricks, timber, concrete, and steel. Consequently, the expenses associated with constructing new properties have increased, causing a ripple effect that impacts the prices of existing homes, particularly in the affordable housing segment. Just like how inflation has gradually driven up the cost of a cheeseburger at your favourite fast-food restaurant, it's having a similar effect on property prices, making this the opportune moment to enter the Perth market.
2. Population Growth: A Demographic Transformation
Another factor behind Perth's property market surge is its population growth. Data and statistics show that the city's population is on an upward trajectory. With its strategic location on the western coast of Australia, Perth offers quicker access to international destinations, making it an attractive option for both domestic and international migration.
Projections indicate that Perth's population is set to double by 2050, likely reaching a staggering 4.4 million. This substantial growth in residents has a direct impact on the demand for housing, thus creating an environment where supply struggles to keep up with the ever-increasing need for homes.
3. Supply and Demand
The third vital factor in Perth's property market growth is the supply and demand dynamics. The city is struggling with a shortage of housing, creating strong competition among the 30 to 40 prospective buyers fighting for the same property. This intense demand is partly caused by the previously mentioned population growth and the changes to housing affordability caused by inflation.
However, the lack of housing supply is also influenced by the challenges faced by property developers. Inflationary pressures have reduced their profit margins, pushing many of them out of business. As a result, fewer properties are being constructed, exacerbating the supply-demand imbalance. This situation further intensifies the upward pressure on property prices.
4. Economic Prosperity and Job Opportunities
Perth's economic prosperity and the availability of job opportunities contribute to the city's expanding real estate market. The city's diverse economic landscape, driven by industries such as mining, technology, and healthcare, attracts professionals and job seekers from across the nation and around the world. This influx of workforce not only fuels demand for housing but also positions Perth as a thriving location for real estate investment.
Conclusion:
In conclusion, the factors of inflation, population growth, supply-demand imbalances, and economic prosperity are steering Perth's real estate market into a growth cycle in 2024. For those considering property investments, Perth offers a compelling landscape of opportunities and potential for substantial returns. For a more in-depth understanding of this topic, property investment guru, Eddie Dilleen, provides a clear video explanation here. Furthermore, if you’re looking to start investing in Perth or build your own property portfolio, feel free to contact us here to learn more about our services and investment strategy.
Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
