ASX Trader: This property market sat silent for years ... not anymore

This property market has long stood out as running a different race to other Australian capital cities and savvy investors are recognising the huge value opportunity, writes ASX Trader.

When most Australian capitals were rocked by the 2008 Global Financial Crisis (GFC), one city stood out for its stubborn resilience: Perth.

While Sydney and Melbourne crumbled and recovered in step with global markets, Perth peaked much later around 2015 before falling into a long, quiet slump.

Why the delay?

And why is the Western capital only now returning to form?

The answer lies deep beneath the surface - literally.

Perth’s property market: Cyclical, but resilient

Over the past 50 years, Perth has experienced multiple boom-and-bust cycles in its housing market.

But a closer look at long-term data such as the REIWA Perth House Prices 1974–2024 chart shows a consistent pattern: the ups have significantly outnumbered the downs.

The trajectory of Perth house prices

Even after a recent run-up, Perth’s median house price remains substantially lower than Sydney’s, and more affordable than Brisbane, Canberra, and even Adelaide.

That makes Perth a standout value opportunity, especially when combined with its powerful demographic and economic tailwinds.

WA leads the nation in population growth

According to official ABS data for the year ending 31 December 2024, Western Australia recorded the fastest population growth rate in the country at 2.4 per cent which was well above the national average of 1.7 per cent.

Here’s how WA compares:

• Western Australia: 70,300 new residents (2.4 per cent growth)

• Victoria: 132,600 new residents (1.9 per cent growth)

• Queensland: 102,800 new residents (1.9 per cent growth)

• New South Wales: 108,100 new residents (1.3 per cent growth)

• Tasmania: 1,600 new residents (0.3 per cent growth – the slowest)

While Victoria saw the largest numerical increase, WA’s percentage growth shows a proportionally higher population surge, driven by interstate migration, overseas arrivals, and economic expansion.

That’s placing significant pressure on Perth’s housing supply, with vacancy rates at record lows and rental yields climbing steadily.

Australian population changes

Rental pressure builds as vacancy hits historic lows

One of the clearest signs of this pressure is in Perth’s rental market, which has become one of the tightest in the nation.

Vacancy rates are hovering near historic lows often below 1 per cent creating severe rental shortages across both inner and outer suburbs.

The consequences are significant:

• Weekly rents are rising rapidly, up 10–20 per cent YoY in some areas

• Prospective tenants are offering above-market rates to secure homes

• Investors are enjoying exceptionally strong yields, rarely seen in other capitals

With more people arriving than homes being built, the rental market has tipped into crisis mode.

For landlords, it’s a windfall. For tenants, it’s become hyper-competitive.

Perth offers a rare balance: Yield and growth

In most Australian cities, investors are forced to choose between capital growth (like Sydney) or rental yield (like parts of regional Queensland).

Perth currently offers both.

Here’s why:

• Capital growth is accelerating, backed by population and economic expansion

• Rental yields remain high, supported by strong tenant demand and low vacancies

• Entry prices are still relatively low, reducing leverage risk

Perth is one of the few places in Australia where investors can enter at a reasonable price, enjoy high yields from day one, and still ride long-term growth.

That combination is incredibly rare and powerful.

A market fuelled by commodities, not headlines

Perth doesn’t behave like Sydney or Melbourne because it isn’t powered by the same levers. Instead, it moves to the rhythm of commodities.

WA is home to the nation’s richest deposits of iron ore, lithium, gold, and natural gas.

When these sectors are booming, Perth flourishes.

Mining investment rises.

High-paying FIFO (fly-in fly-out) jobs return.

Housing demand explodes, especially in city-fringe suburbs and regional centres.

I recently wrote about how the world may be entering a new commodity supercycle, a multi-decade uptrend in resource demand driven by the global energy transition, infrastructure renewal, and the rise of electrification.

If that thesis plays out, WA stands to benefit more than any other region in the country.

When commodities boom, WA booms. And when WA booms - Perth’s housing market follows.

COVID reset and the new commodity supercycle

While the COVID-era boom was largely driven by interest rates and buyer incentives elsewhere, Perth’s rebound was tied to real economic drivers.

A new global push for electrification and decarbonisation - especially in batteries and renewable infrastructure has supercharged demand for WA’s lithium and nickel.

The mining sector is reinvesting.

Jobs are returning.

And Perth’s housing market is finally catching up.

With 70,000+ new residents, skyrocketing rental demand, and a housing supply still playing catch-up, the city is entering a new expansion phase, one that feels more structural than speculative.

Australian housing market changes.

Investor takeaway: Buy with the cycle, not against it

Perth isn’t late - it’s just operating on a different timeline.

Investors who understand the rhythm of resource cycles, demographic pressure, and affordability metrics will see a clear opportunity.

Rather than chasing overheated east coast markets, savvy investors are turning their attention west where housing remains accessible, population growth is surging, and economic fundamentals are rock solid.

With the fastest population growth in Australia, a booming mining sector, and a long runway of affordability, Perth isn’t just catching up, it’s laying the foundation for long-term outperformance.

Ignore the usual cycles.

This is a market powered by deeper forces and it’s just getting started.

Originally published as ASX Trader: This property market sat silent for years ... not anymore