Western Australia Property Report
You might think of Western Australia as arid outback and desolate landscapes. However, WA has many gems for expats looking to return to Australia. Covering nearly a third of Australia, WA has a vast and diverse landscape. From extraordinary rock formations to world-class wineries, WA offers many exciting attractions for investors and home buyers.
There’s a reason Perth was named the world’s sixth most liveable city. Its vibrant culture and stable property prices make it a popular alternative to Melbourne and Sydney.
Contact us today if you’re looking for a local mortgage broker for a home loan in Perth. We specialise in expat home loans and can offer expert advice for those looking to purchase property in WA.
Top Property Locations WA
When most people consider buying a home in WA, they typically think of Perth. While the capital city has many attractive qualities that make it a wonderful place to live, other parts of regional WA also share excellent investment opportunities.
While a lot of WA consists of the unpopulated outback, there are many beautiful and vibrant cities and suburbs along the west coast.
Broome
https://www.realestate.com.au/wa/broome-6725/
Median house price: $640,000
Broome is a beach town in the Kimberley Region. Primarily a tourist destination throughout the summer months, Broome offers many investment opportunities. Moreover, it’s a beautiful place to live year-round. It’s fast becoming a popular place to raise a family or retire.
With great weather all year, it’s a popular destination for those who love the beach life – swimming, surfing, and boating. The 22km of white sands at Cable Beach is one of the most scenic beaches in the world.
Property prices have increased 32%, while units, on average, cost $330,000 (6.9% price growth). On average, over 90 properties sell a year. Speak to mortgage brokers in WA about finding the right home loan for your dream home in Broome.
Carey Park
https://www.realestate.com.au/wa/carey-park-6230/
Median house price: $295,000
Just two hours south of Perth, Carey Park is a highly affordable suburb with a thriving housing market. In the Bunbury Region, Carey Park offers beaches, nature, and dolphin watching. It’s the perfect middle ground for those who love the convenience and vibrancy of city life but the charm of a country town.
The average demographic are professionals in their 30s and 40s. It’s a quiet, respectful, and family-orientated area.
House prices are up 18%, while the average unit costs $283,000 – up 35.4% year-on-year. The steep rise in apartment prices speaks to the growing demand for property in Carey Park.
Falcon
https://www.realestate.com.au/wa/falcon-6210/
Median house price: $434,500
Falcon (named after Falcon Bay) fronts the Indian Ocean and offers plenty of opportunities for surfing, swimming, fishing, or enjoying BBQs on the beach. It’s a friendly, peaceful community just one hour south of Perth. It’s a fast-growing suburb with a lot of potential for home buyers.
House prices in Falcon have increased by 10.6% in the last twelve months. The average unit costs $375,000 (up 18.7%). Ask the best mortgage brokers about your expat home loan Perth options to buy a property in Falcon.
Average Property Price WA
House prices in Perth have remained relatively stable over the last 20 years. Unlike the dramatic fluctuations of Australia’s other capital cities, Perth property prices have increased by just 0.6% over the last decade.
That said, the city has seen very few major declines in the housing market, with average property prices essentially remaining between $600,000 and $700,000. The current median property price in Perth is $675,995.
Average House Price WA
House prices in WA currently average $766,093. They have increased 10% in the last year, but only 1% over the decade. Three-bedroom houses are significantly cheaper, costing $671,424. Three-bed homes have also seen a similar price change – up 9.5% year-on-year and 0.9% in the last ten years.
House prices peaked in June 2022, with the average reaching $767,790. However, house prices remain stable and should continue to grow in the future. Speak to a mortgage broker about buying houses in Perth.
Average Unit Price WA
On average, units cost $408,866 in Perth. While unit prices have increased 5.3% in the last five years, they are down 0.1% over the last decade. Unit prices peaked in December 2013, averaging $470,466. However, Perth units offer an excellent opportunity for an investor or home buyer as they begin to go up again in price.
We can help you find the right home loan to buy a unit in Perth.
Average Apartment Price WA
Two-bedroom apartments in Perth cost $396,049 on average. Two-bed apartments are up 0.3% in the last decade and 5.1% over the previous twelve months. Like units and houses, Perth apartment prices are relatively stable, with few dramatic fluctuations.
However, forecasts suggest Perth apartments could see growing demand and increased prices. A Perth mortgage specialist can advise you on the best time to enter the WA apartment market.
Average Number of Properties Sold per Month in WA
While only 29 houses sold in the last month in Perth, there are plenty of opportunities to buy units and apartments. In the last month, property owners and investors sold 261 units in Perth. Properties spend approximately 70 days on the market before getting snapped up. Consult a mortgage broker if you’re interested in purchasing a property in Perth, WA.
Stamp Duty Costs in WA
Stamp duty in WA ranges between 1.9% and 5.15%. You must pay a stamp duty tax when you buy a property – rates differ between states. Foreign buyers (not Aussie expats or permanent citizens) must also pay a 7% surcharge.
WA stamp duty rates:
- Property valued between $0 – $80,000: $1.90 for every $100
- Property valued between $80,000 -$100,000: $1,520 plus $2.85 for every $100 over $80,000
- Property valued between $100,000 – $250,000: $2,090 plus $3.80 for every $100 over $100,000
- Property valued between $250,000 – $500,000: $7,790 plus $4.75 for every $100 over $250,000
- Property valued above $500,000: $19,665 plus $5.15 for every $100 over $500,000
The average property price in Perth ($675,995) would cost $26,125.00 in stamp duty fees.
Other Property Costs in WA
- Deposit: A 20 – 30% deposit will prevent you from paying lenders’ mortgage insurance. The bigger your mortgage deposit, the better your borrowing power, home loan terms and interest rate. If you earn a foreign currency, lenders may reduce your borrowing power.
- Valuer Fee: Between $300 and $600. More rural properties in regional WA may cost more to value.
- Conveyancing and Legal Fees: Between $750 to $1,100.
- Lender Fees: Between $0 to $500.
- Building Inspection Fee: Between $250 to $990.
- Pest Inspection Fee: Between $250 to $990.
- LMI: Depending on your loan-to-value ratio, you may need to pay lenders’ mortgage insurance. The cost varies depending on your deposit size and borrowing power.
- Mortgage Registration Fee: $187.60
FIRB Application Fees: Foreign purchasers might have to pay between $4,000 and $237,600, depending on the property value, for FIRB approval.
Loan Options
If you’re eager to buy a home in Western Australia’s diverse and scenic landscape, consider your mortgage options. Aussie expats living abroad are eligible for most home loan types, including fixed-rate, variable, or interest-only mortgages. Additionally, you can apply for extra features, such as an offset account or redraw facility, if you have good borrowing power.
Expats or permanent residents living and working abroad may struggle to find lenders willing to consider their foreign currency earnings. Don’t worry; we can assist. We are mortgage brokers specialising in expat home loans and can ensure you get the best interest rate and mortgage choice available.
Pros and Cons of Buying in WA
Buying a property in WA is a significant investment, but there are few better chances to become a homeowner in Perth or regional WA. With interest rates still relatively low, and property prices cheaper than in most other Australian cities, the Perth housing market offers strong potential.
The advantage of buying a house in Perth is that the property market has excellent growth potential. As more and more people move out of the costly states (like NSW and Victoria), Perth is experiencing an influx of sudden interest. Get ahead of the crowd and buy your Perth home before prices increase.
The disadvantage of buying a house in Perth is that property prices in WA rarely fluctuate to extremes. While this ensures you’re making a solid investment, you might miss out on the extreme price growth home buyers in other states experience. However, Perth’s steady property prices ensure the city is an excellent place to live.
Key Facts About WA
Western Australia is incredibly vast. In fact, if the state were a country, it would be among the 10th largest in the world. With everything on such a colossal scale, Perth is a very isolated capital city – closer to Singapore than Canberra. However, Perth has everything a home buyer could want. With stunning beaches, natural beauty, and affordable house prices, it’s a popular destination for returning expats.
Consult an expert mortgage broker about your home loan options to land your dream Western Australian home.
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