Perth is a city of growing social and economic opportunity.
The Future of Perth report by McCrindle Research highlights the city’s many advantages, from its diversifying economy and proximity to Asia to its cosmopolitan liveability.
The report depicts a city of growing sophistication, connected to the global economy and capable of drawing the skills and talent required for the jobs and industries of the future.
These factors will bring more people from interstate and overseas in the coming years, providing a strong foundation for the city’s housing market.
We outline the key insights of the report likely to benefit the Perth property market, including the rental sector.
1. An expanding city
Perth’s population has grown from 1.7 million people in 2009 to just over two million today. The growth has been evenly spread across the city, with the south-east, south-west and north-west drawing around 100,000 extra residents each.
While the north-east has experienced lower population growth, the report notes recent road and rail infrastructure investment has prompted a host of new land developments in this part of the city.
Perth’s population is expected to increase to 2.5 million people in 2030, 2.9 million in 2040 and almost 3.4 million by 2050. This growth will support the property and rental housing sectors.
2. Lifestyle benefits
The report highlights Perth’s affordable lifestyle and ease of living as population drawcards.
In addition to the stunning natural landscape and beaches, Perth has benefited from long-term infrastructure development.
This has delivered world-class hospitals and healthcare facilities, internationally regarded schools and universities and refreshed cultural infrastructure including Perth Stadium and Elizabeth Quay.
Average daily commute times of 59 minutes are 10% lower than the average for mainland capital cities.
“Perth’s demand for skills and its attractiveness as a lifestyle city will continue to act as pull factors for migration through this decade and beyond,” the report says.
3. Infrastructure boom
In addition, a new wave of infrastructure investment is transforming Perth for the future.
The report references major transport, commercial and cultural developments such as the $5.3 billion Perth City Link and the recent Federal-State agreement to revitalise the CBD.
These developments will draw people to Perth, while also providing a platform to support population growth.
4. A diversifying economy
With an economy geared heavily to the mining industry, Western Australia’s economic output per capita is 42% higher than the national average.
The report forecasts the number of jobs in Perth will increase by more than 70,000 over the next five years as the economy continues to expand and diversify.
“The jobs most in-demand in the coming years will leverage technology in healthcare, professional services, construction, and education and training,” the report says. “Perth is well-positioned to take hold of these emerging opportunities with both hands.”
The city’s proximity to Asia will be another strong economic driver.
As the only Australian capital sharing a time zone with China, Singapore, Hong Kong and Malaysia, the report says Perth is strategically positioned to capitalise on the ‘Asian century’.
“This maturing city still has much more development left in it,” the report says. “With Australia’s population growth primarily driven by overseas migration, Perth can expect to continue to attract attention on the global stage for years to come.”
As the report highlights, Perth is positioned for growth well into the future and presents a great opportunity for property investors looking to make a move in 2021.
If you’re interested in buying an investment property in Perth, contact our experienced team of property managers today.