Is It Worth Investing in WA?

Is It Worth Investing in WA with Simon Deering and Heath Bassett

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Buyer's agent and co-founder

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Quick introduction

Is it still worth investing in property in WA? This question has been on the minds of many property investors, especially given the remarkable growth the Perth property market has experienced in the recent years. To answer this frequently asked question, we’ve turned to two of Western Australia’s leading property experts: Simon Deering and Heath Bassett, co-founders of You&Me Personalised Property Services, the buyer’s agency made for you.

In this quick video analysis, we’ll explore the current state of the WA property market, examine recent growth trends, and uncover valuable insights that could shape your investment decisions. Whether you’re an experienced investor or considering your first property purchase, this expert roundup will provide you with the knowledge you need to understand and see opportunities in the growing Western Australian real estate landscape.

Meet our Expert Buyer’s Agents

Simon Deering

Co-founder of You&Me Personalised Property Services, Simon Deering brings a wealth of experience in the Perth property market. Known for his strategic approach to property investment, Simon has a keen eye for identifying emerging opportunities in both metropolitan and regional areas.

Heath Bassett

Affectionately known as “the Stat Man,” Heath Bassett is the numbers guru behind You&Me Personalised Property Services. With his finger on the pulse of market statistics and trends, Heath provides data-driven insights that form the backbone of the company’s investment strategies.

Expert Insights

Perth’s 18-Month Property Boom: Causes and Performance

How has the Perth property market performed over the last 18 months, and what factors have driven this growth?

Heath Bassett: “The Perth property market has experienced phenomenal growth over the past 18 months. From January 2023 to January 2024, we saw an average growth of 16.7% across the board. What’s even more impressive is that some areas, particularly in the lower price ranges, have seen growth as high as 36%, the highest in all of Australia for that period.

Fast forward to May 2024, and we’ve seen an additional 6-7% growth, bringing the total to around 23% in just 17 months.

Low supply and high demand

This growth has been primarily driven by the fundamental principle of supply and demand.

Perth is currently the most undersupplied state with the strongest demand, which has been the key factor in pushing prices upward.”

Simon Deering: “It’s interesting to note that back in January 2023, many top economists were predicting a downturn due to rising inflation and interest rates. However, those of us on the front lines of the market understood that in real estate, it all comes down to supply and demand. When supply is low and demand is high, prices will inevitably rise. And that’s exactly what we’ve seen in Perth.”

Perth’s Hottest Areas and Top-Performing Properties

Which areas of Perth have shown the strongest growth, and what types of properties are performing best?

Heath Bassett: “The Perth southeastern corridor has shown particularly strong growth. For example, Armadale grew by 36% from January 2023 to January 2024 and has since added another 10-12% growth. Similarly, Gosnells experienced 26% growth in the same period. These figures are well above the average, demonstrating the strength of these areas.

In terms of property types, the ‘investor space’ (properties in the $600K to $1.1M range) has been performing exceptionally well. Properties that were around $470K not too long ago are now priced anywhere between $535K to $550K.”

Simon Deering: “For investors looking in the $600K to $900K range, I’d recommend staying as close to the coast as possible. This includes areas up and down the coast, extending towards Mandurah. The coastal regions have shown strong, consistent growth and continue to be in high demand.”

Untapped Opportunities for Investors

What opportunities exist in regional WA for property investors?

Simon Deering: “Regional areas in WA are offering some excellent investment opportunities. Bunbury, for instance, has outperformed Perth, growing by 20% compared to Perth’s 16.7% over the same period. It offers good rental returns, beautiful coastal living, and a thriving local economy.

Another standout regional option is Geraldton. For around $550,000, you can secure a four-bedroom, two-bathroom home on a 600-800m² block, built in the mid-2000s, with a rental yield of around 6%. Geraldton is positioned for growth, has a strong economic outlook, and offers excellent returns.”

If you’d like to know what rental yield is (and how you can calculate it), feel free to read and watch this article/video.

Heath Bassett: “To add to that, Geraldton has shown remarkable recent growth, with an 8.8% increase in just the last three months! This rapid growth indicates that the regional market is catching up and offering significant opportunities for investors.”

Essential Insights for Investors

Perth’s property market has grown by approximately 23% in the 17 months leading up to May 2024.
The southeastern corridor, including suburbs like Armadale and Gosnells, has shown above-average growth.
Coastal areas continue to be strong performers, particularly in the $600K to $900K
Regional areas like Bunbury and Geraldton are offering compelling investment opportunities with strong growth potential and attractive rental yields.
The fundamental principle of supply and demand continues to drive the WA property market, with Perth remaining undersupplied relative to demand.

As an investor looking to buy in WA, what options might be suitable for me?

For investors looking to capitalise on the current Western Australian property market, we’ve compiled the following strategies based on our expert insights. While these provide a valuable starting point, it’s important to note that every investor’s situation is unique. The strategies outlined here are intended for general informational purposes only and should not be considered a substitute for personalised professional advice. We strongly recommend consulting with a qualified property investment specialist or our team at You&Me Personalised Property Services for tailored recommendations that align with your specific financial goals and circumstances.

With that in mind, consider the following general strategies as food for thought:

Focus on undersupplied areas

Look for suburbs where demand outstrips supply, as these are likely to see continued price growth.

Consider regional investments

Areas like Geraldton offer the potential for strong returns and capital growth, potentially allowing investors to build equity before moving into the Perth market.

Stay informed about market trends

Regularly review market data and expert insights to make informed investment decisions.

Diversify your portfolio

Consider a mix of metropolitan and regional properties to spread risk and maximize opportunities.

Seek professional advice

Engage with local buyer’s agents who have in-depth knowledge of the WA market to help identify the best opportunities. Whether you choose our buyer’s agency or another, you’ll receive tailored recommendations suited to your investment goals..

Investing in WA, our conclusion

The Western Australian property market, particularly in Perth and key regional areas, continues to offer compelling investment opportunities. With strong growth over the past 18 months and ongoing supply constraints, the market shows no signs of slowing down in the near future.

As Simon Deering aptly puts it, “Guys, look, we love what we do. Hopefully, you’re picking up the passion that’s coming down the barrel of the camera.” This enthusiasm is well-founded, given the current state of the WA property market.

For those asking, “Is it still worth investing in WA?”, the answer from our experts is a resounding yes.

However, as with any investment, it’s crucial to do your due diligence, stay informed about market trends, and seek professional advice to make the most of these opportunities.

Contact us about your property investment in WA

If you’re looking to invest in Western Australia’s thriving property market, reach out to the team at You&Me Personalised Property Services.

Our expertise and passion for the WA market can help guide you towards successful property investments in this exciting market.

Remember, in the world of real estate, timing can be everything. As Heath and Simon have demonstrated, the time to consider investing in WA is now. Happy investing!

Video Transcript

See transcript

Imagine a time long, long, long ago. In a land far, far, far away.
You mean January 2023, in Perth, Western Australia? Yeah, that's exactly what Heath.
G’day, my name is Simon Deering. I'm the co-founder of You&Me Personalised Property Services, the buyers agents made for you. And this is my partner in crime and fellow co-founder, Mr. Heath Bassett, a.k.a. the Stat Man.
Tell us just how far Perth has come over the last 18 months and what it's been doing and where we're going to go. Yeah, absolutely. So, you know, January 2023 to January 2024 might have already known, but it's grown 16.7% on average. Obviously, you know, the lower, lower prices have grown a lot more. And we've seen stats statistics go 36%, the highest growth in all of Australia from January 2023 to January 2024.
Fast forward again. Another what are we, five months? Yeah. January to June? Yep. January to May. we've got another 6 to 7% depending on the stats that you read. So you know, what's that? Somewhere around 23% growth in the last, 17 months.
And it's really funny because I remember doing the videos back in January 2023, where all the top economists around the world, around Australia, sorry, were trying to say that everything is going to go down.
Inflation is rising, interest rates are going up. And we all said back in January 2023, people are on the front line of the market that there's only one thing you need to know in a market in real estate: supply and demand.
If there is no supply and there is a strong demand, prices will go up.
Perth is still the most undersupplied state with the strongest demand. So what do you think's going to happen over the next 12 months? Guys, you need to get on the party. You need to get on the train. And when we're talking about those percentages, mate, that's not even really painting a true picture because that's over the whole lot.
What do you see happening on that sort of say, $600K to $1.1M space?
It’s what we call “investor space”. And, you know, I can said, you know, those properties that were around $470K, that's gone long gone. Don't asking for it again.
But these spots are now, you know, $535K to $550K, you know, that particular suburb Armadale grew 36% January last year to January this year, and it's growing another, 10 to 12%, remembering the average is around 6% in that time.
So again, it's double the average.
Gosnells, another southeastern corridor, suburb through 26% that January to January. So it is going up, up, up.
So look, you know, for me it's pretty simple. If you're looking to invest somewhere between, say, $600K to $900K, I'd be staying as close to the coast as you possibly can. Up, up the coast, down the coast, Mandurah way.
If you're still in that sort of bracket around that $500K bracket or $550K in Perth. Is it not worth having a little bit of a drive down south and ending up in a little place called Bunbury, Perth’s second biggest economic hub in Western Australia?
Absolutely. Bunbury over the time to Perth grew 16.7% Bunbury actually grew 20%.
Wow. So it's actually grew. Although regional it grew 4% more than Perth over the same period.
And you're getting good strong rental returns there too. You're on the coast. It's beautiful weather. you know, plenty things are today.
And then probably your picks for regional if it's not right now, it’s Geraldton every day of the week!
So what's Geraldton going to give you for $550K? $550,000 in Geraldton gives you a four bedroom two bathroom, built mid 2000’s, 600 m² to 800m² of block of land and then a rental yield around 6% right?
Okay, so it's right for growth, good economic hub coming out of Geraldton. It is regional. great, great returns and really good strong growth over the next short term.
So, perhaps people are looking to increase. It might be a way to start in the regional town, get some growth over the next 12 to 24 months and then recycle that equity or sell and then buy in a major capital city.
So I'll give you a, give you a little, hint, guys out there, Geraldton grew 8.8% in the last three months.
Okay. So it's happening. It's there, it's there. Yeah.
How long do you think that's got now? I mean, it's always one of the things that jumps on later. So it's going to last later. and I'm not saying if it falls in the hole that Geraldton is just a magic bean.
You would be willing to invest in Geraldton over the next two years?
Yeah.
There it is. So who wants to stop imagining about this far, far away land and just stop being in the ‘far far away land’?
Get over here: Western Australia!
Guys, look, we love what we do. Hopefully you're picking up the passion that's coming down the barrel of the camera.
And if you are looking for some investing tips you want to get involved with, Perth Premier Buyers agency. Reach out to the team. We'd love to hear from you. Would love to be able to help and always guys. Until next time, happy investing.

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Simon Deering

About the author

Buyer's Agent, Co-Founder at You&Me Personalised Property Services

Helping property buyers get into Perth and Brisbane property faster and for less.

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