perth dusk view
Available stock to both buy and rent across Perth remains low. Image – Canva.
  • Active investors refers to those intending to purchase property over the next twelve months
  • After Perth, 32% of active investors cite Brisbane as their top market
  • Brisbane Olympics noted as a factor in their decision

A survey conducted by a property advisory firm has found that seven in ten active investors nationally plan to purchase property in Perth or Brisbane.

Conducted by Momentum Wealth, the most desired city is Perth.

40% of active investors – those planning to buy property in the next month – wish to do so in the Western Australian capital. Brisbane followed with 32% of active investors believing the Queensland state capital to be the best location to invest in over the year.

Highlighting their relative unaffordability, just 11% and 7% of active investors cited Sydney and Melbourne as their preferred destinations respectively.

Preferred city among investors planning to buy in the next 12 months

Perth 40%
Brisbane 32%
Sydney 11%
Melbourne 7%
Adelaide 5%
Hobart 3%
Darwin 1%
Canberra 1%

Source: Momentum Wealth Property Sentiment Report 2022

Why Perth and Brisbane?

As part of the survey, investors were asked to reason their selections. The affordability of Perth and Brisbane was the leading point of appeal for the two capital cities.

About one in five respondents who choose Perth noted the current position in the housing cycle as the main upside.

29% of investors who favoured Brisbane noted the same reason too, with 35% citing the city’s affordability.

22% noted the 2032 Olympic Games as the main driver behind their decision.

“With a large response from WA-based investors, we expected some homegrown preference in our survey results,” noted Momentum Wealth managing director and founder, Damian Collins.

“However, our findings confirm that Australia-wide, investor confidence in Sydney and Melbourne is experiencing a decline, while Perth and Brisbane are gaining traction as preferred investment markets.”

Mr Collins noted the latest Housing Affordability Report from the Real Estate Institute of Australia which confirmed that while 26.2% of household income was required to service a home loan in WA, this increases to 37.3% in Victoria and 46.5% in New South Wales.

“Perth in particular offers investors considerable value for money,” added Mr Collins.

The survey’s findings also correlate strongly with NAB’s Residential Property Survey, which revealed WA as the leading state for housing market confidence over the next 12 months at 78 points. Sentiment was lowest in Victoria with just 30 points.

Perth still expected to rise this year

Despite a slowdown in the housing market nationally, values across Perth are still expected to rise this year. REIWA’s current forecasts show a growth rate of 10% in Perth for 2022, driven by 4.3% growth in the state’s economy during the 2020-21 fiscal year.

The mid-year review, released in December 2021, forecasts 3.5% growth this year – the fastest in eight years.

The latest CoreLogic figures show the Perth market is on track to meet REIWA’s predictions, with the Perth Home Value Index rising by 1.1% during April.

“While stock levels remain well below long-term averages, the return of interstate and overseas migration into Perth will also underpin a significant uptick in demand for housing, so there is plenty of upside for investors who get into the market now,” concluded Mr Collins.

You May Also Like

Rest acquires 33% stake in Quay Quarter Tower

Forms part of the superannuation fund’s plan to diversify its investment portfolio across Australia and overseas

Medicinal cannabis farm for sale in Tasmania

A unique turnkey investment opportunity in Tasmania has blossomed, with a 44.26 ha medicinal cannabis facility up for sale

Top 20 investment-grade suburbs

With the cost of almost everything rising across the board, which suburbs can you invest in with confidence?

5 investment property tax boosters to beat the rising cost of living

In light of the cost-of-living crisis, a leading quantity surveyor practice has outlined moves that could deliver investors a cashback tax boost