Jonathan Barrett @barrett_ink Sun 7 Jan 2024 06.00 AEDT

Buyers and renters compete for limited stock as the Western Australian capital favours sellers and landlords, CoreLogic analysts say

The Australian property boom has shifted from east to west, with buyers and renters tussling for a limited number of Perth homes and creating a housing crisis for those left behind.

Perth has become the hottest selling market among state capitals…highlighting the gulf between Perth and the rest of the country.

CoreLogic’s research director, Tim Lawless, said buyers were probably feeling a sense of urgency given they had little choice or ability to negotiate in Perth.

Renters in the Western Australian capital were also under intense pressure, with Perth tenants now entering their fourth consecutive year of historically low stock, which has been pushing rents higher. Perth has the tightest capital city rental market in the country, with vacancies at 0.4%, according to SQM Research.

The tightness in the Perth property market, which is also evident in regional areas, comes after a relatively subdued period when price growth failed to keep pace with the sharp rises recorded in other major cities, led by Sydney and Melbourne.

As a result, housing construction in Perth was subdued for several years, creating a sharp supply and demand imbalance. This has been exacerbated by strong population growth and a mining sector that is expanding well beyond its iron ore and gold base to other labour-intensive projects, including lithium mines.

https://www.theguardian.com/australia-news/2024/jan/07/perth-overtakes-east-coast-to-become-australias-hottest-capital-city-property-market