Apartments surge a golden opportunity for investors

Perth’s apartment market is witnessing phenomenal growth and vitality.

With a staggering 24.5 per cent annual growth rate for units, Perth is outpacing every other capital city in Australia, according to the latest CoreLogic Home Value Index. It’s time we recognise the unique position we find ourselves in.

Perth’s current median unit value of $540,546 might raise eyebrows in Sydney or Melbourne, where similar properties fetch nearly double that price.

Within this relative affordability lies our competitive edge. Perth’s comparatively low entry prices, combined with its impressive capital gains, has created ideal buying conditions for both investors and owner-occupiers.

Consider this: while Sydney units crawled to a 4.3 per cent annual growth and Melbourne barely moved at 0.4 per cent, Perth units have soared, as reported by CoreLogic.

Even Brisbane and Adelaide, with their respectable 19.6 per cent and 18.5 per cent growth rates, can’t match our momentum. Perth’s growth rate outpacing those cities is a testament to its underlying strength and appeal.

The numbers tell a compelling story: a 2.1 per cent increase in the past month alone and a 6.4 per cent rise over the quarter. These aren’t just statistics; they’re a clarion call to investors across the country – and they’re listening.

Investor lending in Western Australia is up by 53 per cent year on year – more than double the national average. The smart money, as they say, is backing Perth.

But it’s not just about the price gains – CoreLogic’s data shows our city offers a gross rental yield of 4.3 per cent for all dwellings, outstripping the national average of 3.7 per cent.

In a market where returns are becoming increasingly hard to come by, Perth stands out as a beacon of profitability.

What’s driving this remarkable performance? It’s a perfect alignment of factors. CoreLogic notes supply constraints have kept our market tight, with advertised stock levels more than 30 per cent below average.

This scarcity, combined with Perth’s enduring appeal as a liveable city, has created a recipe for sustained growth.

As the affordability crunch continues across Australia, the shift towards apartments isn’t just a Perth phenomenon.

Units are outpacing houses in terms of growth nationally, reflecting changing lifestyle preferences and price considerations.

Perth is at the forefront of this trend, offering quality apartment living without the eye-watering price tags of our eastern counterparts.

To investors, homebuyers and industry stakeholders, the message is clear: Perth’s apartment sector is more than a market – it’s an opportunity.

The numbers from CoreLogic don’t lie. Perth’s apartment market isn’t just sitting pretty – it’s soaring. And from any perspective, the view looks better than ever.

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