- 06 Dec 2024
- By API Magazine
Capital growth, high rental yields and a strong economy have ked to new investor loans in Western Australia soaring.
Western Australia is quickly cementing its place as a hotbed for property investors, with a combination of affordability, strong rental yields and a booming local economy driving an unprecedented surge in investment activity.
Recent data from the Australian Bureau of Statistics (ABS) highlights this trend, showing that in August, WA recorded 2,587 new home loan commitments by investors—a 32.4 per cent increase from August 2023.
This growth places WA second only to Queensland, which saw a 36 per cent rise in investor loan commitments over the same period.
Other states and territories experienced significantly smaller growth, including South Australia (26.6 per cent), the ACT (21.3 per cent), and New South Wales (18.7 per cent). Notably, Tasmania saw a decline, with investor loans dropping by 5 per cent.
According to the Urban Development Institute of Australia WA (UDIA WA), investor interest from interstate buyers has surged by 53 per cent over the past year.
The state’s relative affordability and favourable market conditions are major drawcards, particularly for investors from pricier markets such as Sydney and Melbourne.
“Western Australia’s combination of affordability and high rental yields is unmatched,” said a UDIA WA spokesperson.
“It’s no surprise investors are increasingly turning their attention to Perth and other WA cities.”
The influx of investors isn’t confined to residential real estate.
WA’s retail property sector has also seen significant activity, with approximately $1.2 billion in retail assets traded since early 2023.
A standout transaction includes the $420 million acquisition of a 50 per cent stake in Perth’s Lakeside Joondalup Shopping Centre, underscoring the confidence in the state’s economic stability.
Factors underpinning WA’s investor boom
Perth remains one of Australia’s most affordable capital cities for property buyers.
According to property experts, this affordability provides a unique opportunity for investors to maximise value in a competitive national market.
WA also boasts some of the highest rental yields in the country.
As of November 2024, Perth’s average rental yield sits at 4.2 per cent, significantly higher than the national average of 3.7 per cent.
WA’s strong economy, supported by its thriving mining sector, offers a stable environment for long-term property investment.
Perth property prices have risen by 3 per cent over the latest quarter and led the nation with capital growth of 1.1 per cent in November.
Property investment growth to continue in 2025
While WA and Queensland lead the charge in attracting investor activity, other states have struggled to keep pace.
Victoria, for example, saw only a modest 4.6 per cent growth in new investor loans year-on-year, while the Northern Territory grew by just 3.2 per cent. Tasmania, bucking the national trend, recorded a 5 per cent decline in investor commitments.
The disparity in growth rates highlights WA’s unique position as a standout market for investors seeking strong returns and stable economic conditions.
Looking ahead, WA’s property market continues to thrive, experts predict sustained interest from both domestic and international investors.
With new infrastructure projects and a growing population, the state is poised to remain a beacon for property investment well into the future.
The recent figures from the ABS, coupled with booming market trends, reaffirm that Western Australia is no longer just a resource-rich state—it’s now a property investment powerhouse.
