Perth's Housing Market Sees Latest Developments and What Happened This Week

This week, the Western Australian government announced plans to release more land for development in the suburbs of Ellenbrook and Jandakot, in an effort to ease the pressure on the city's housing market. The move is part of the government's Metronet program, which aims to improve public transport links and reduce congestion in the city.

The housing market in Perth is a major concern for the WA Labor government, as the city's population continues to grow due to its strong resources economy and the influx of workers related to the AUKUS defence contracts and the expansion of the Stirling Naval Base. The Indian Ocean Strategy has also led to an increase in immigration, putting further pressure on the city's housing stock. With the state budget surplus expected to reach $2.5 billion by the end of the financial year, the government is under pressure to deliver on its promises to address the housing shortage.

Local Developments

In the suburb of Scarborough, the local council has approved plans for a new apartment complex on West Coast Highway, which will provide 50 new units for renters. Meanwhile, in the city centre, the redevelopment of the Perth City Link project is underway, with construction expected to be completed by 2028. The project will include a mix of residential, commercial, and retail space, and is expected to provide a significant boost to the local economy. Organisations such as the University of Western Australia and Curtin University are also investing in new infrastructure, with the UWA announcing plans to build a new $100 million research centre in the suburb of Nedlands.

According to data from the Real Estate Institute of Western Australia, the median house price in Perth has risen to $650,000, with rents increasing by 15% in the past year alone. The vacancy rate for rental properties has also fallen to just 1.5%, making it difficult for tenants to find affordable accommodation. On St Georges Terrace, the heart of Perth's CBD, office space is also in high demand, with the average rent per square metre reaching $1,200 per month.

As the city continues to grow and develop, it is likely that the pressure on the housing market will only increase. The government has announced plans to invest $400 million in affordable housing initiatives, including the construction of 1,000 new social housing units. However, with the population expected to reach 2.5 million by 2030, it is clear that more needs to be done to address the housing shortage. For now, prospective buyers and renters will need to be prepared to act quickly, with properties in popular suburbs such as Subiaco and Fremantle selling fast.