Rising demand for luxury property in Perth

Western Australia, particularly the Perth area and its stunning coastal regions, is experiencing a surge in demand for high-end properties and developments.

This trend is fuelled by various factors, including an influx of high-net-worth individuals (HNWIs) and a robust local economy.

Buyers are increasingly prioritising premium amenities such as smart home technologies, high-end appliances, and sustainability features—elements that are now becoming standard in luxury developments.

Boutique developments are particularly sought after for their exclusivity and personalised living experiences. Prime locations like Applecross, South Perth, Scarborough and Nedlands are attracting discerning buyers looking for unique properties that stand out in the market.

Luxury apartments have also seen a notable uptick in demand, especially from owner-occupiers who are less sensitive to interest rate fluctuations.

These developments are setting new benchmarks for design and luxury living.

Despite rising interest rates, Perth remains more affordable compared to other Australian prime property markets like Sydney and Melbourne.

This relative affordability, coupled with increasing population growth, is sustaining the luxury property market. Additionally, investors are attracted to high rental yields and capital growth potential in emerging suburbs that are undergoing significant infrastructure upgrades.

These buyers are drawn to larger, high-end apartments that offer sophisticated amenities, including rooftop gardens and advanced security systems.

Prime property to surge higher

A notable trend in WA is the rise of mixed-use developments, which integrate high-end residential properties with commercial and cultural spaces.

This approach offers a lifestyle-oriented living experience, as seen in burgeoning suburbs like Como and Nedlands. These developments appeal to both local and international buyers seeking an elevated lifestyle that combines convenience and luxury.

While location remains the top priority for apartment buyers, other factors are increasingly important. Sustainability, customisable living spaces, and security are key elements sought after in the luxury apartment market.

The future of boutique developments looks promising, with property sales expected to soar over the next five years. A new wave of affluent buyers is eager to secure beachside residences in Australia, further driving the market.

Profound impact of generational wealth

Downsizers are significantly influencing the demand for luxury lock-and-leave style apartments, as they sell their principal residences to invest in a luxurious lifestyle.

This trend is likely to gain momentum, especially as younger generations are set to inherit substantial wealth, driving their desire for luxury, low maintenance living options.

This generational wealth impact is poised to have a profound impact on the real estate landscape in the coming years.

A September market update released by Soho provides a somewhat bullish view on Perth property with a five-year forecast that predicts the 2024 median house price in Perth will reach $690,000, reflecting an 8.4 per cent increase from the previous year. Continued growth is expected in 2025, with the median house price predicted to rise to $740,000 by the end of 2024 and then stabilise at $750,000 by mid-2025.

Over the next five years Perth’s median house price is anticipated to see annual growth rates between 6 per cent and 8 per cent, potentially reaching $900,000 by 2029.

WA’s luxury property market is flourishing, propelled by the increasing demand for boutique developments that offer sustainability, premium amenities, and exclusivity.

The market is expected to remain strong as more investors and buyers turn to WA for relatively affordable luxury properties compared to the eastern states of Australia.

The outlook for luxury property development in WA for 2024 is promising, highlighting a growing market for boutique projects that appeal to buyers seeking a blend of convenience, exclusivity, and long-term investment value.