Hello there lovely Red Fox peeps! Lately, there’s been a lot of chatter about Eastern States buyers swooping in on WA properties, and it’s something we’re being asked about a lot when meeting with potential sellers.

Are they responsible for Perth’s property price boom and stealing homes away from locals?

Here’s the lowdown:

Yes, WA has become the hotspot for Eastern States investors. Despite our property prices trending up, they find the value irresistible, thanks to our (relative) affordability and solid rent price growth.

That said… Eastern States investors favour suburbs with low median prices, so they’re not very interested in inner north houses. You won’t be competing against an Eastern States investor if you’re trying to buy a family home in Mount Lawley or Inglewood. You may be competing against an Eastern State buyer looking to return, or move to, Perth, though. Price growth on these properties is being driven by demand from owner-occupiers, not investors. But the overwhelming majority of that demand is local.

That doesn’t mean there’s no interest from Eastern States investors in the inner north. They are keen on well-priced near city townhouses, units or apartments with high rental yields, while the prices remain affordable. While you might find it hard to sell an investment property with a tenant on a long lease to a local buyer, that’s not true if targeting Eastern States investors.

Local market competition at the moment, for the most part, is fierce, with low building completions and rental challenges pushing locals towards established homes.

And why is this happening? Because our population is booming! WA is currently the fastest growing state in Australia, with 3.1% growth in the year to June 2023 alone – that equates to about 30,000 new households hunting for a home. And the increase is expected to continue in 2024.

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The real challenge? It’s not Eastern States investors; it’s supply. WA is facing a building completion crunch, with only 15,000-16,000 expected this financial year, not nearly enough for our growing population.

WA might be the current investment hotspot for Eastern States buyers, but like all trends, it’ll pass. Rising house prices are already shifting investor focus elsewhere as yields dip.

Our advice? If you’re looking to buy, you must be patient, persistent and organised. Market conditions don’t look like changing any time soon. And if selling, ignore the media and speak to an active local real estate agent who can give you the facts about who is around and buying in your suburb for your property type.

Good luck!

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Wanting advice about your own specific home and circumstances? Call me now on 0405 812 273 – we’re here to help.

Red Fox Property Group are ratemyagent real estate Agent of the Year award winners in Mount Lawley, Inglewood and Bedford. We specialise in the suburbs surrounding Beaufort Street and beyond.