Buyers are continuing to target the Perth market, despite analysts expressing concerns it has reached its peak. The Commonwealth Bank’s State & Territory Quarterly Perspective (June 2024) reveals that Western Australia recorded the strongest total lending in the past 12 months, with total lending up by 39% and investor lending surging by 70.5%.

New South Wales followed with total lending increasing by 31.8%, while Queensland saw a rise of 28.5%, Victoria 17.5%, ACT 9.8%, and Tasmania 0.2%. Investor lending also showed significant growth in Queensland (46.4%), South Australia (44.6%), and NSW (43.9%). However, Victoria, which introduced higher taxes for investors last year, experienced the weakest growth in investor lending at 16.6%.

Despite recent demand and price increases, Perth’s housing market remains more affordable compared to other capital cities. Melbourne's affordability has also improved due to higher home construction rates and increased property listings. In contrast, Brisbane has been labelled the "second worst in the country" for affordability behind Sydney, while parts of Adelaide have become more expensive relative to income than Melbourne.

Expert Insights and Strategies

Navigating the Perth Market

Given the significant lending activity, Perth remains a hot spot for property buyers and investors. With its strong growth, understanding market dynamics is crucial.

Strategies for Success:

• Market Research: Conduct thorough research on Perth’s neighbourhoods to identify high-growth areas.

• Investment Planning: Consider long-term investment strategies to capitalise on Perth's market trends.

• Professional Guidance: Work with experts like DMC Property Advisory to navigate the complexities of the market and secure the best deals.

Property Affordability and Opportunities in Other States

While Perth leads in lending, other states also offer unique opportunities.

For NSW and Queensland:

• Investor Growth: With high investor lending, explore investment properties that promise good returns.

• Affordability Check: Assess affordability to ensure sustainable investments.

For Victoria:

• Tax Implications: Be mindful of higher taxes and seek professional advice to maximise returns.

For South Australia and Tasmania:

• Emerging Markets: Look for emerging markets that offer growth potential without the steep prices of major cities.

Conclusion

Australia's property market continues to show robust growth, with Perth leading the way in lending. By staying informed and employing strategic approaches, buyers and investors can navigate this dynamic landscape effectively. DMC Property Advisory offers comprehensive services, ensuring that you make well-informed decisions to maximise your property investments.