Investors Flock to Western Australia’s Booming Property Market

Western Australia is emerging as a top destination for property investors, driven by affordability, high rental yields, and a strong economy.

Surge in Investor Loans

New data from the Australian Bureau of Statistics (ABS) shows WA recorded 2,587 new home loan commitments by investors in August—a 32.4% increase from August 2023. This growth places WA second only to Queensland, which saw a 36% rise.

Other states lagged behind, with South Australia (+26.6%), the ACT (+21.3%), and New South Wales (+18.7%) showing smaller gains. Tasmania was the only state to see a decline (-5%).

Strong Demand from Interstate Investors

According to the Urban Development Institute of Australia WA (UDIA WA), investor interest from interstate buyers has surged 53% in the past year.

“Western Australia’s combination of affordability and high rental yields is unmatched,” said a UDIA WA spokesperson. “It’s no surprise investors are turning their attention to Perth and other WA cities.”

Retail property is also attracting significant investment, with $1.2 billion in retail assets traded since early 2023. Notably, a $420 million acquisition of a 50% stake in Perth’s Lakeside Joondalup Shopping Centre highlights investor confidence in WA’s economic stability.

Key Drivers of WA’s Investor Boom

• Affordability – Perth remains one of Australia’s most affordable capitals.

• Strong Capital Growth – Perth dwelling values have risen 21% over the past year.

• High Rental Yields – Perth’s average rental yield sits at 4.2%, well above the national average of 3.7%.

• Economic Strength – WA’s economy, supported by mining, provides long-term stability.

• Steady Price Growth – Perth property prices rose 3% in the latest quarter, leading the nation with 1.1% capital growth in November.

Investment Outlook for 2025

While WA and Queensland lead the property investment boom, other states are struggling to keep pace. Victoria saw just 4.6% growth in investor loans, while the Northern Territory increased by 3.2%. Tasmania continued to decline.

With ongoing infrastructure projects and a growing population, WA’s property market is expected to remain a prime destination for investors seeking strong returns and stability. As trends continue to strengthen, WA is proving to be more than just a resource-rich state—it’s a thriving property investment powerhouse.