With a median personal income that’s 10% higher than the nation, low cost of living and an affordable housing market, Perth is well positioned to attract an increasing number of migrants seeking the great Australian dream.
As many Australians find themselves priced out of the housing markets in Sydney and Melbourne, we have seen more and more people packing up and moving to more affordable cities.
Brisbane has been the front-runner so far in interstate migration, however, the Western Australian capital is becoming an increasingly attractive option as well.
“Brisbane is known for its great lifestyle and weather, but many people don’t realise that Perth is actually our sunniest capital – it even nudges ahead of the Sunshine State capital. The city consistently ranks amongst the most liveable cities in the world, and with the resources sector ramping back up, big infrastructure projects underway and a recovering housing market, astute investors are keeping an equally close eye on Perth,” said Ironfish Head of Property, William Mitchell.
At $728 a week, Perth has the highest median personal income of all the major capital cities in Australia. It’s 10% higher than the national average as well.
The cities compared: weekly median personal income
The nation’s most affordable city
Not only are wages strong, Perth also boasts the lowest cost of living out of the 5 major cities, when ranked on an index of overall affordability. According to a study by the Bankwest Curtin Economics Centre (BCEC), Perth was revealed to be the most affordable out of the 5 major cities, with Sydney being the most expensive, followed by Melbourne, Brisbane and Adelaide.
“Perth actually ranks relatively well on a broad comparison of living costs with other capital cities across Australia, counter to the popular perception of Western Australia being one of the most expensive places in the country to live,” said BCEC Director and report author, Professor Alan Duncan.
Economic and employment indicators are strengthening in Perth as well, with growing demand for Western Australia’s mineral and natural resources.
World’s largest LNG exporter
Western Australia’s annual merchandise exports grew by a massive 7.7% over the 2018 financial year. This was driven by a 3% growth in exports to China which will continue to demand the state’s exports.
According to Deloitte Access Economics, Asia’s demand for gas will shortly make Western Australia the world’s largest exporter of LNG.
Capitalising on the Global Lithium Boom
The Western Australian Government has also recently established a Battery Taskforce to take advantage of a once-in-a-generation lithium and battery minerals boom.
Lithium and other commodities found in WA such as nickel, cobalt, manganese, graphite and copper are key ingredients in the lithium-ion batteries that drive electric cars.
Mines Minister Bill Johnston noted that the global demand for lithium and battery minerals would result in thousands of new, highly skilled, high-paying jobs in the state.
$60 Billion infrastructure pipeline
Australia has more cranes at work right now than the USA – with the infrastructure sector being the star performer. Western Australia alone has a $60 billion infrastructure pipeline which is set to stimulate the local economy and deliver thousands of jobs. The infrastructure pipeline is headlined by major projects: Metronet, Perth City Link and the Airport Link.
“The recent interstate migration figures from the ABS show that fewer people are now leaving Western Australia for other states compared to last year. This is a trend we expect to continue and strengthen over the medium term, and one we will continue to monitor,” Mr Mitchell said.
Property Investment Perth
Experienced investors – including our own CEO – are investing in Perth now ahead of the boom. If you would like to find out more about this market, watch our Perth market update or download our latest quarterly market report.