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Booming Rents and Tight Markets: What’s Happening in WA’s Property Scene?

Western Australia’s rental market continues to dominate property discussions in 2025. Using insights from CoreLogic’s January 2025 Monthly Housing Chart Pack, we delve into WA’s strong rental growth, tight market conditions, and what these trends mean for property investors and renters.

A Market on the Rise

WA experienced a 6.4% annual increase in rental rates in 2024, outpacing the national average of 4.8%. This reflects the state’s unique dynamics: robust population growth, steady economic activity, and constrained rental supply. Perth and its surrounding regions are driving this growth, with strong demand creating competitive conditions for renters and investors alike.

Low Vacancy Rates Tighten the Market

Vacancy rates in WA remain near record lows, with limited new rental stock entering the market. Ongoing demand from interstate and overseas migration has further driven rents higher, making WA one of the most competitive rental markets in Australia. Renters are facing rising costs, while investors benefit from high yields and consistent demand.

Moderation Expected in 2025

While CoreLogic forecasts national rental growth to moderate in 2025 as migration normalizes and household sizes stabilize, WA’s distinct market conditions may slow this trend. Local employment opportunities and Perth’s comparative affordability suggest that demand for rental properties will remain strong, supporting sustained growth in rental rates.

Investors Reap Strong Yields

WA investors enjoyed gross rental yields of 4.4% in December 2024, significantly higher than the national average of 3.7%. For property owners, WA’s rental market offers a compelling case for continued investment, combining consistent returns with long-term growth potential. However, managing risks—such as rising borrowing costs and regulatory shifts—requires expert guidance.

What Does This Mean for You?

For Property Investors:
WA offers a rare opportunity for investors to capitalize on strong rental yields and consistent growth. The tight rental supply highlights a market gap that investors can fill by developing or securing well-located properties. At Proteger Financial Solutions, we work with you to navigate these opportunities, ensuring your investments are optimized for growth and aligned with your financial goals.

For Renters:
Low vacancy rates and rising rents present affordability challenges for renters, especially in high-demand suburbs. Now is the time to consider alternatives, such as shared housing or exploring more affordable neighborhoods. If homeownership feels like a distant dream, we can help you assess your options and plan for the transition.

Why Choose Proteger Financial Solutions?

At Proteger Financial Solutions, we have a deep understanding of WA’s property market and a proven track record of helping clients navigate its unique challenges. With years of experience and a client-first approach, we turn market insights into practical strategies that empower property investors and renters alike.

Whether you’re looking to expand your property portfolio or secure your next home, our team is here to guide you every step of the way. With Proteger Financial Solutions, you can approach WA’s dynamic market with clarity, confidence, and a strategy tailored to your goals. Contact us today to discuss how we can support you in achieving your property ambitions.

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Western Australia’s Real Estate Secret: What’s Driving the Nation’s Hottest Market?

CoreLogic’s latest Home Value Index (HVI) report highlights significant trends shaping Western Australia’s property market. WA stands out with robust property growth, defying broader national slowdowns. As 2024 closes, here’s a look at what the data reveals and what it means for buyers, sellers, and investors.

WA Leads the Nation in Property Growth

Perth continues to outperform other capital cities, recording a 1.1% rise in property values in November and a 3.0% increase over the quarter. This brings Perth’s annual growth to a remarkable 21%, cementing its status as the country’s top-performing market.

The regional WA market is also thriving, with a 3.3% quarterly increase in dwelling values. Areas like Bunbury and the Augusta-Margaret River region are particularly strong, driven by lifestyle demand and relative affordability.

Supply and Demand Dynamics

Despite impressive growth, Perth’s housing market faces challenges in balancing supply and demand. CoreLogic notes a significant 33% increase in listings during spring, the highest seasonal surge among the capitals. However, this rise in supply comes off a low base, with total stock levels still below the five-year average. As an example as at the time of writing (2 December) there are 5,055 properties available for sale whereas 10 years ago in December 2014, there were 12,007. 

The influx of listings is not fully matched by purchasing activity, which has softened nationally. In WA, however, buyer demand remains comparatively resilient, supported by population growth and employment opportunities in the state’s resource sector. Last week, there were 1,027 sales, therefore the current listings only represent approximately 5-weeks of supply.

Rental Market Insights

WA’s rental market remains tight, with Perth recording the highest annual growth in house rents (8.7%) and unit rents (9.7%) among all capitals. High rental yields, particularly in regional areas, continue to attract investors, though the pace of rental appreciation is beginning to moderate.

What’s Next for WA Property?

As the national property upswing slows, WA appears well-positioned to weather challenges in 2025. While interest rates and affordability concerns may temper growth, the state’s strong fundamentals—such as ongoing infrastructure investment and a robust economy—provide a solid foundation for sustained activity.

Your Property Journey Starts Here

At Proteger Financial Solutions, we’re here to help you navigate WA’s dynamic property market. Whether you’re planning to buy, sell, or invest, our expert team can provide the insights and strategies you need to make confident decisions.

Contact us today to discuss your property goals and take the next step with clarity and confidence.

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The Surge in Property Investment: What It Means for Investors in 2025

Articles

The Surge in Property Investment: What It Means for Investors in 2025

As we come to the end of 2024, the Australian property market continues to capture the attention of investors. Recent data from the Australian Bureau of Statistics reveals that the value of new investor loans in September 2024 was 29.5% higher than the same period last year. While month-to-month changes have been minor, this year-on-year growth highlights a strong resurgence in investor confidence.

What’s Driving the Trend?

Several factors are fuelling this increase in investment activity. One of the key drivers is the Reserve Bank of Australia’s decision to hold interest rates steady, giving investors confidence to plan long-term. Many seasoned and first-time investors are anticipating a potential drop in rates, which could further boost borrowing capacities and create even more opportunities in the market.

Higher interest rates have presented challenges in recent years, but a shift could act as a spark for increased demand, particularly among first-time buyers. This aligns with insights shared in a recent article by Bluestone, which highlights the potential for market recovery as borrowing capacities improve.

Opportunities Beyond Metro Areas

Another significant development in the investment space is the shift in focus toward regional areas. Traditionally, property investment has centred on major metro hubs. However, recent changes to lending policies, such as the removal of postcode restrictions by some lenders, are opening doors to more affordable yet high-yield opportunities in regional Australia.

This is particularly true for locations like North Queensland and Western Australia, where property prices remain relatively low, but rental yields are strong. These areas are becoming hotspots for investors looking to diversify their portfolios without overextending financially.

Challenges Facing Investors

Despite the optimism, securing finance remains a key hurdle for many investors, especially for those with non-traditional income streams, such as self-employed individuals. Mainstream lenders often favour borrowers with straightforward financial profiles, leaving many prospective investors underserved.

Flexible lending solutions tailored to a broader range of income types are essential for addressing these challenges. These solutions make it easier for non-traditional borrowers to access funding, ensuring that more Australians can capitalise on current market opportunities.

Why Now is the Time to Act

With market conditions aligning in favour of investors, now is an excellent time to explore your options. Whether you’re an experienced investor or just starting out, leveraging flexible lending solutions can help you take advantage of current opportunities.

Ready to Explore Your Investment Options?
Whether you’re a seasoned investor or just starting your property journey, understanding your financing options is key to making the most of current market opportunities.

At Proteger Financial Solutions, we specialise in tailoring solutions to your unique goals, including flexible lending options and expert advice on navigating the property market.

Let us help you turn your property investment plans into reality!

This article draws on insights from a recent discussion by Bluestone about investment trends in 2024, particularly the growing focus on regional markets and the need for flexible finance options.

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