Is Property Development in Perth a Good Idea?

Updated: February 17, 2025

Most people in Australia, including you, probably have some financial interest in property, and for good reason. It is a tried and tested place to invest your money, grow your wealth and achieve financial freedom. Property is statistically a far safe place to have money than the stock market on along running average, and typically rides out the storm much better than stocks in times of economic crisis or instability. In uncertain times like these, it is very important to make informed decisions about where and why you are choosing to invest in and develop property in Australia. If you make the wrong property investment and development decision at the moment, you will lose a lot of money. On this section of the website, you will learn why Perth is a going to be the best place within Australia to invest in and develop property in Australia for the foreseeable future.

The majority of Australians are familiar with the phrase “safe as houses” meaning many have a significant proportion of their wealth tied up in property. This is either in the family home, investment properties or through superannuation funds. In fact, the enormous total book value of Australian Property means Australians are regularly listed in the top 3 countries for wealth per capita.​ Most Australians look at property as a long term wealth accumulation strategy, relying on capital growth through a buy and hold model.

To begin with, growth in the property market for each major capital city is cyclical, with most capital cities in Australia experiencing 7-10 years of growth followed by 5-10 years of market retraction. You need to know where in the cycle your capital city is in its growth cycle; it is either in a growth phase headed to a peak, or its at a peak about to head into a value contraction phase to a bottom (loss of value). If you get the timing wrong of when and where you enter the market, you risk loosing money by buying at the wrong moment in the cycle.

most major east coast capital cities (Sydney, Melbourne) are now at peak or are in the downturn phase of their cycle after many years of strong and sustained growth. These cities will continue to stall or fall in vlaue through 2025 as affordability, cost of living, cost of construction, high taxes, high interest rates ands median prices continue ot bite. The subsequent unit oversupply that follows as buyers exit the market will become major and cohabitant issues that will continue to drive down prices.

Perth however will begin an orgainc gorwth phase tha ti sloong overdue. the covid stimulus period saw us climb out of the bottom of a downward cycle after its near ten year slump, with WA now being in consistent positive growth territory since november 2019. The first 3 months of 2025 may see slight contraction in the rate of growth, as the housing market consumer sentiment cools temporarily. With rates poised to drop, the next middle and upper qaurtle market segment boom is on its way, as affordabilitys is granted tothese market semgents and consumers continue their suburb climbing aspirations thanks to more credit access. Even in the face of rising living costs and a contrction price index tate lift at double the rate of Victoria, WA is sitll at record undpersupply levels of rentals and homes for sale. Immigration form interstate continues to pick up, and rents have soared; vlaues and demand for housing will have a second wind here as demand conitines to outstrips supply .

Perth is poised to continue an upward phase of growth in the coming years ( having done approx 18% in the 12 months to jan 2025). Perth should recover from any small falls and accelerate into sustained mid and long term growth driven by;

• strong opportunites for overseas and interstate migration intake to sustain housing demand, to meet new infrastructure and mining project labour shortages, including the Perth airport expansion , new womens and childrens hospital,  and the Henderson subsea and shipyard technology precinct.
• strong domestic demand for product off the back of high living costs and falling eastern states home values juxtaposed against exceptional affordability in WA ( Median price for housing in WA still lower than all eastern states cpaital city’s),
• a strong, diversified and resurgent resources driven state economy (security of supply for asian and global markets staving off recession),
• huge latent buyer demand with chronic undersupply of current and forecast housing stock levels (less than 2 months supply on market) with a now reopened border and ample job opportunities.

Property Development is a versatile and complimentary strategy to simply investing (buying and holding) property in Australia. You can make money by developing property in the short term at most points in the market cycle. Whilst it is great to be developing in a rising market, you dont necessarily need to rely on on capital growth to create equity uplift, because you are value adding in other ways.If you focus on getting the timing right however, you can add value through development and compound the returns by letting the market do some heavy lifting at the same time (capital growth in a rising market)- which is where we are at in WA!

This is what makes the prospect of getting into property development in Perth at the moment so exciting. Perth is the only capital city in Australia entering the orgainc upswing part of our cyclical growth phase. And its never been more statistically attractive to enter the WA market . The trick then is getting into a market at the bottom or upswing parts of the growth cycle, and developing and selling as the market is heading to a peak in a rising market. Now is the time to get in and prepare to ride that wave.

​There has never been a better time from a buy value perspective in Perth . All the correct indicators exist showing the start of the next phase of growth in the state:

• Surge in land and housing demand forecast by experts off the back of interstate and overseas migration
• Latent undersupply (10 years of poor dwelling commencements and land releases) meaning lagging supply and demand that is about to explode.We are well behind our infill and dwelling commencement targets, lagging 10-20% behind required commencement rate at current migration levels
  
• New resources projects in the mid-west and north-west driving unmet labour demand and wages to levels higher than the last mining boom, with mining now accounting for a record breaking 49% of state GDP.
• Supply is well outstripped by demand (undersupply in land, housing and units) reflected in 18% increase in price over 2024- 2025 and almost 20% increase in rents in some areas. Rental vacancy rate has fallen sharply to less than half of what is required for a balanced market, with no end in sight.
• Good medium and future employment prospects, with the second lowest unemployment rates in the country.
• second highest migration rate behind Queensland

​It is a perfect time to get a property development planning started in Western Australia. The state is currently headed for a population increase to meet labour skills shortages, an under-supply of housing in key growth areas, and provides exceptional value for money for property acquisition. This is the opportune environment for a savvy property developer to thrive.

Before committing to doing a development in Perth, many of our customers started by learning the specifics of how to become a successful property developer from us so they dont make mistakes. Spending a bit of time getting the right information, education and guidance from us has given them the developer know-how they needed to make informed decisions about successfully investing and developing in Perth. Developing is slightly different from state to state, and understanding when and where to buy is something you dont want to get wrong, particularly if you are new to the whole process. Learn how to work with us today to help you with the next step in your property development journey!