Is an east coast invasion to blame for Perth’s supply problem?

And understandably so, with Mr White noting the strong opportunities for investors in the state.

“They’re drawn by the value our market offers. Despite increases over the past few years, our property prices are much more affordable than the east coast, and we’ve had significant rent price growth. This means properties have the potential for very good yields.”

For renters, this is good news. The more investors drawn to the state, the greater the number of rental properties. Currently, Perth’s vacancy rate sits at the very tight rate of 0.5 per cent, according to SQM Research, so any increase in properties in the rental pool would be a welcome relief for the city’s tenants.

“We need every rental property we can get,” Mr White stated plainly.

From a buyers’ perspective, however, the answer of whether this interstate interest is good for Western Australians is less clear cut.

“It does mean there is greater competition for homes in some areas,” Mr White said, pinpointing the south-eastern and south-western corridors of Perth, alongside regions such as Bunbury, where interest from investors seems to be highest, owing to their lower median prices and rising rents.

Ultimately, however, the Western Australian expert noted that competition is not only coming from eastern state residents, as low building completions are pushing more prospective home owners into the established dwelling market, and record international migration driving demand as well.

East coasters may be contributing to competition, but as someone who has spent a long time observing market dynamics, Mr White predicted that their involvement will soon be on the decline.

“WA is the current hotspot for eastern state investors and what we need to understand is that this will pass. When yields become less attractive, they will move on to the next big thing. This is already happening in sections of our market; with some of our members noting rising house prices have reduced yields and interest has fallen,” he said.

And he reminded that competition is only a problem when homes are in short supply – an issue that is certainly the case in Western Australia, which will exist no matter the activity of east coast investors.

Mr White urged everyone to keep the real issue in sight.

“What is concerning is WA’s low level of building completions. About 14,000 new homes were completed in each of the last three financial years and the Housing Industry Forecasting Group is only expecting 15,000–16,000 this financial year. That is not enough to meet the needs of our growing population.”

Acknowledging that the Western Australian government is aware of the situation and is working to address the problem, he urged buyers and industry insiders alike to bide their time.

“It’s a stressful situation and I urge people to be patient. If you’re looking for a home, work with real estate agents and property managers. And above all, be kind to each other.”

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