Western Australia: The epicentre of property investing in Australia
Western Australia has become the epicentre of property investing in Australia.
That's the view of Mike Mortlock, managing director of MCG Quantity Surveyors, who has seen remote investing accelerate in 2023, namely due to the significant investment made in the Western Australian property market.
The company’s latest analysis of their client data showed the average distance between where landlords live and where they invest has reached a staggering 1502 kilometres to date in 2023.
“This is a substantial uptick on last year’s result and shows that buyers are incredibly mobile when it comes to securing a desirable property investment," Mortlock says.
This year’s outcome is a near doubling of the same analysis in 2022 which showed an average of 857 kilometres between a landlord’s home and investment.
It’s been an ongoing theme according to the numbers. To the end of 2021, the distance was 559 kilometres. Before that in pre-pandemic times, the remote investing distance was 294 kilometres to January 2020.
Mortlock says WA is now considered among the nation's most investor-friendly jurisdictions.
"There's little doubt its popularity with real estate buyers from the east coast has increased the gap between home and investment," Mortlock says.
“Western Australia, and more specifically Perth, has seen a substantial uptick in investor participation. Price is a factor as some big capital city markets are now beyond the reach of everyday buyers. Our analysis shows the average price an investor pays for a property is approximately $615,000. That amount will go a lot further in Perth than it will in Sydney or Melbourne."
That investor interest is only likely to be heightened by the announcement of Burswood Point, the $3.8 billion masterplanned Burswood precinct by developer Golden Sedayu.
The mega project, which will transform the peninsula with 4,500 homes and apartments as well as office and retail space, is expected to be a hit with both local, interstate, and overseas investors who are looking to take advantage of the rarity of such a project at its earliest stage.
The project is set to inject more than $10 billion into the state’s economy and generate 25,700 West Australian jobs over the next 10 years.
Managing Director of Golden Sedayu Andrew Sugiaputra said after years of careful planning, he was thrilled to reveal their vision for this city-defining project.
“At 38 hectares, Burswood Point is one of the largest urban development projects ever undertaken in Australia, and certainly the most ambitious mixed-use redevelopment currently underway in Perth,” Sugiaputra said.
“With its dress circle position across from the Perth CBD, Burswood Point is set to become a destination in its own right – home to a range of premium tourism and recreational facilities, including markets, riverside parks, a shopping centre and luxury hotel."
Golden Sedayu are currently taking early enquiry on the project, which will see the first homes and apartments go on sale early next year.
