Perth apartments defying the national downturn

While property markets across the nation are trending negatively overall, underneath the headlines remain some pockets of positivity – particularly for apartment investors.

For six consecutive months now, Cotality has reported falls in national dwelling values, with its latest monthly Home Value Index (HVI) showing the nation’s two biggest cities, Sydney and Melbourne, fell seven per cent and 6.2 per cent respectively over the past 12 months.

And while Perth dwelling values remain 10.1 per cent higher than what they were a year ago, the Western Australian capital is not immune to the downturn, recording a 4.7 per cent fall in the past three months.

Against that backdrop, it’s no surprise there has been a stalling in sales activity.

In Perth, the HVI showed transaction volumes were down 24.2 per cent annually – one of the steepest falls of all capitals and in line with the national price pullback.

New research from CBRE Australia, however, indicates Perth apartments are among the best placed of any market segment for price growth.

CBRE Australia’s latest Apartment Vacancy, Rent and Price Outlook named Perth and Brisbane as the markets it was most optimistic about for apartment price growth through to 2030.

Across the Perth metropolitan area, new apartment projects expected to be completed within the next five years equated to just nine per cent of existing stock.

By contrast, markets such as the Gold Coast, Sydney’s upper North Shore and inner Brisbane charted shares of 24 per cent, 19 per cent and 18 per cent respectively.

For prospective investors seeking to navigate the uncertainty, that combination of thin supply and a historically tight rental market can be a compelling proposition.

Home values may dip and dive as the property cycle continues its twists and turns each month, but the market fundamentals of Perth apartments remain solid.

The State Government’s latest economic profile indicated WA’s economy remained in a growth phase, with 3.5 per cent growth in state final demand – the second-highest rate of all states and territories.

That growth continues to translate into more jobs, with forecasts showing the State Government expects annual average employment to increase by 1.75 per cent in 2026-27 and 1.5 per cent in 2027-28.

And, of course, more jobs equate to more demand for housing, placing additional pressure on a rental market already dealing with 2.1 per cent vacancy, according to Cotality.

None of this guarantees future growth, but as national commentary continues to paint the property market with a broadly negative brush, Perth’s apartment sector appears to be working from a different set of fundamentals.