This is a very common question that many of our clients have been asking for the past 6 months. We have been helping clients to buy properties in Perth for the past 2-3 years and these properties experienced considerable growth. Together, let’s explore if Perth is still a great investment option in July 2024.

Investors eyeing Perth’s booming housing market should exercise caution as signs suggest some suburbs may have already peaked in value. Damian Collins, chairman of Momentum Wealth, advises that “while Perth’s overall housing market still has upward potential, certain areas in the south-east are starting to show signs of overheating”. 

These suburbs, including Armadale, Camillo, and Brookdale, have seen house prices surge by over 40% in the past year alone, driven by strong investor demand from the east coast.

                           

Collins urges caution, noting that current prices in these suburbs have outpaced broader market trends and could soften once investor interest wanes. Despite recent rapid growth—such as Armadale’s 9.9% increase in the last three months—these inland suburbs, less favoured by locals, may face limited future demand primarily from investors.

Perth’s overall home values have soared by 62.6% since the pandemic began, outperforming other capital cities, with a 22% increase in the past year alone. Tim Lawless, CoreLogic’s research director, advises potential investors to tread carefully, acknowledging ongoing growth potential while cautioning against expectations of sustained rapid growth.

Kent Lardner, founder of Suburbtrends, notes that while growth remains strong in some areas, many Perth suburbs are moving towards a more balanced housing market. Signs of slowdown in suburbs like Murdoch and Beaconsfield hint at affordability challenges ahead, potentially reducing opportunities for quick gains.

At Investia, we believe that Perth still offers some great options for investments, especially around areas like Rockingham, Mandurah and North of Joondalup. The gap between supply and demand is still very strong there, yields are attractive and vacancy rates are still extremely low. Off-market properties are very hard to access and buyers need to be extremely quick when opportunities arise. 

In summary, while Perth’s housing market continues to show strong growth in select areas, potential investors should be aware of signs indicating a possible cooling trend in certain suburbs, prompting a cautious approach in their investment decisions.