A sharp rise in population growth is intensifying demand for affordable homes in Perth, particularly in the sub-$1 million bracket, according to a buyer’s agent.
Peter Gavalas (pictured) of Resolve Property Solutions says the influx of skilled migrants into Western Australia is pushing up competition in already sought-after suburbs.
“Many new arrivals are professionals with stable incomes, looking to build long-term lives in Perth,” Gavalas said. “They’re targeting family-friendly, well-connected areas and are often ready to act quickly, which is putting added pressure on supply at the affordable end of the market.”
The Australian Bureau of Statistics reports WA remains the fastest-growing state, with annual population growth of 2.4% in 2024, adding 70,300 people. Of this, 64.2% were overseas migrants.
Analysis from Oxford Economics Australia also confirms Perth has one of the highest shares of overseas-born residents nationally.
“Many of these newcomers are settling in the metro area and contributing directly to the economy, which is helping sustain housing demand,” Gavalas said.
Perth has long been seen as one of Australia’s more affordable capital cities, but that affordability is being tested as population growth surges and rental vacancies remain tight.
“International buyers are attracted by Perth’s lower entry prices, strong job market and lifestyle benefits, including quality education and transport links,” Gavalas said. “A budget of $750,000 to $900,000 still stretches far here, especially when compared to Sydney or Melbourne.”
Competition for homes under $1 million is now intense, particularly for well-presented properties in established suburbs.
“In many areas, buyers need to act fast, make strong offers and be prepared for multiple competing bids,” Gavalas said.
The Real Estate Institute of Western Australia reports the median days on market for properties in Perth dropped to 12 in July, giving buyers limited time to act. Active listings also fell to a 12-month low of 3,382 in July, as many potential vendors delayed selling until spring, amplifying the shortage of homes for sale.
“This can be especially tough for overseas buyers who aren’t familiar with the local market,” Gavalas said. “I strongly recommend getting expert help early, particularly if you’re unfamiliar with Australian property laws or finance processes.”
Gavalas said having a local representative can help buyers avoid costly mistakes and overpaying.
“Understanding buying conditions, auctions and how to make a compelling offer is so important in a competitive market like Perth,” he said.
With interest rates now lower following RBA’s 0.25% cut in August, more Australian buyers are expected to re-enter the market. Economists say another reduction later this year remains possible – a move likely to reignite buyer activity and further fuel demand.
“There are still good opportunities in Perth for both local and international buyers,” Gavalas said. “But my message is clear: do your research, move quickly and get local guidance.”
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