- Australia remains a hotspot for wealthy international travellers as the real estate market remains stable.
- Population growth in Perth, Australia is contributing to an increase in property prices.
- Industry experts suggest that the rental market is beginning to loosen up and the increased population is helping to balance the market.
The Australian real estate market has remained stable despite the increase in interest rates. This is due to a rise of population in wealthy urban areas, particularly in Perth.
Cath Hart, CEO of The Real Estate Institute of Western Australia (REIWA), stated that June 2023 projections show that the population in Perth will increase by 1.8% in 2023-24, which should lead to rising property values.
REIWA reported a 2.3% increase in Perth’s population last year. The median house price at the end of 2022 experienced a growth of 1.5%. Hart noted that the demand for homes in Perth is high, and population growth supports it.
Hart also said that a record number of properties are currently being built to meet the needs of the locals and international buyers, who have helped the market to remain stable.
Over 20,000 homes are currently being built, with local wealthy individuals moving out of their existing properties and into new ones as they become available.
According to Hart, this should ease some market pressure and create more attractive high-end properties for international high net-worth individuals (HNWIs) in both the sales and rental markets.
The projected population growth of 1.8% is expected to balance out the impact of the new supply on pricing. High-end homes in Australia are continuing to sell rapidly.
The average amount of time for a property to be present on the Perth real estate market stood at just 10 days in June of this year, according to REIWA data.
International HNWIs looking to move to Australia’s luxury urban areas should consider Perth as a good opportunity to make international payments and purchase a primary or secondary residence.
In June of this year, the median rental cost for a house hit an all-time high of A$580 per week, a jump from A$550 at the end of December 2022, while the average price for units increased from A$475 to A$525.
Since the beginning of the year, the vacancy rate has been a mere 0.7%, and property managers have witnessed a steady stream of people lining up for home opens, along with multiple applicants for each property.
Hart stated that there are some indications that the rental market is improving and that this development would be supported as new homes currently in progress are finished.
Wealthy internationals looking to invest in luxury properties overseas should use secure online money transfer services to facilitate the transaction.
HNWIs wishing to purchase real estate in any of Australia’s major cities can compare foreign exchange rates using our online money transfer comparison tool.
