Buying Property in Perth: Why It’s Gaining Foreign Investor Attention in 2025

For Singaporean investors seeking international diversification, value, and sustainable growth, Perth's property market has decisively emerged as a top-tier destination in 2025. The Western Australian capital is currently presenting a powerful and rare combination of relative affordability, a robust economy fuelled by both resources and diversification, and some of the strongest rental returns in Australia. This unique alignment of factors is why a growing number of savvy investors from Singapore are turning their attention westward.

This article delves into the macro trends and micro-opportunities defining Perth’s market, providing a comprehensive guide for navigating this high-growth landscape.

 

Perth Emerges as a Top-Tier Investment Destination

Perth's appeal is not just anecdotal; it is underpinned by compelling market data and strong economic fundamentals that set it apart from other global cities.

 

A. Current Market Pulse

The Perth property market is demonstrating exceptional performance. As of March 31, 2025, Perth was leading Australia in total property returns at 16.7%, showcasing significant momentum even as growth moderates from the rapid pace seen in late 2024.¹ This capital appreciation is complemented by a robust rental market, which is a key consideration for any investor. For instance, suburbs like Joondalup are delivering gross rental yields of 5.2% for houses and an impressive 6.1% for units, providing a strong and consistent income stream.²

 

B. Key Investor Magnets

From a Singaporean perspective, three core factors make Perth particularly attractive:

1. Relative Affordability: Compared to the high entry costs in Singapore and other Australian capitals like Sydney and Melbourne, Perth offers a significantly more accessible investment threshold.
2. Robust Economic & Population Growth: Western Australia’s (WA) economy is thriving, with a diversified base in mining, healthcare, education, and construction. This economic strength is attracting people, giving WA the highest state population growth rate in the nation at 3.1% in the year to March 2024.³
3. Strong Rental Fundamentals: Fuelled by population growth, Perth’s rental market is incredibly tight. A low vacancy rate, reported by some sources to be as tight as 0.9%, ensures strong tenant demand and upward pressure on rents, securing consistent returns for landlords.

C. Snapshot of Opportunities

For foreign investors, the primary opportunities lie in the acquisition of new dwellings and development projects. Understanding Australia's evolving foreign investment regulations is crucial, as the framework directs overseas capital towards investments that increase the nation's housing stock.

 

Perth's Property Market: Macro Trends & Driving Forces

The city’s property boom is not a fleeting trend but is built on a foundation of solid economic, demographic, and infrastructure developments.

 

A. Western Australia's Economic Resilience (2025 Outlook)

Western Australia’s economy is forecast to continue its strong performance, with Gross State Product (GSP) projected to grow by 2.0% in both 2024-25 and 2025-26.⁴ This growth is powered by a potent combination of iron ore, LNG, and lithium exports, alongside significant business and government investment. The state's labour market remains strong, with a low unemployment rate of 4.2% and high demand for skilled workers, ensuring a stable and prosperous consumer base.⁵

 

B. Population Dynamics & Migration

Housing demand is fundamentally driven by people, and Perth is a magnet for new residents. Western Australia not only recorded the highest population growth nationally but is also one of the few jurisdictions experiencing positive net interstate migration.⁶ People from other Australian states are moving to WA, drawn by its affordability and abundant job opportunities. This influx, which includes skilled professionals and international students from Asia and beyond, places sustained demand on the housing market.

 

C. Infrastructure Development & Investment

The WA government is investing heavily in major infrastructure projects that enhance liveability and unlock value in the property market. The landmark Metronet public transport expansion is a prime example, improving connectivity to outer suburbs and regional centres. As Savills notes in its guide for investing in Australian property, infrastructure development is a key catalyst for capital growth, and properties located along these new transport corridors are poised for significant appreciation.

 

D. Affordability & Relative Value

Despite its strong price growth, Perth remains Australia's most affordable capital city. With a median house price of approximately $786,000 and a median unit price of $540,000 as of March 2025, it offers a compelling value proposition.⁷ For a Singaporean investor, this affordability means that a budget that might secure a small apartment locally could command a substantial house with land in a desirable Perth suburb.

 

Residential Market Appeal: Key Segments for Foreign Investors

Navigating the Perth market requires an understanding of the specific segments and regulations relevant to overseas buyers.

 

A. Navigating Foreign Investment Rules (Crucial for 2025)

Australia's foreign investment framework, overseen by the Foreign Investment Review Board (FIRB), is designed to ensure that foreign capital serves the national interest. For residential property, this primarily means:

New Dwellings: Foreign buyers are generally permitted to purchase new or off-the-plan properties.

Vacant Land: Purchasing vacant land is allowed, provided that construction of a residential dwelling is completed within four years.

Redevelopment Projects: Acquiring an established property for redevelopment is permissible if the project significantly increases the housing supply (e.g., demolishing one house to build several townhouses).

Build-to-Rent (BTR): Foreign investment in established BTR developments is now permitted.

It is important to note that the government has recently increased application fees and doubled vacancy fees for foreign-owned properties to encourage their use as long-term rentals.

 

B. Capital City Performance & Forecasts (2025-2026)

Market analysts remain bullish on Perth. Forecasts from October 2024 [2] predicted house price increases of 5.2% by the end of 2025, with units expected to perform even more strongly with 8.0% growth.⁸ The city also consistently offers some of the highest rental yields in Australia.⁹

Suburbs to Watch: Areas showing strong growth and rental demand include Baldivis, Joondalup, Cannington, Butler, East Victoria Park, and the northern coastal corridor suburbs of Alkimos, Eglinton, and Yanchep.

 

C. Property Type & Investor Profiles

Demand is strong across the board for both traditional family homes and multi-bedroom apartments, particularly in suburbs rich with amenities like schools, parks, and retail centres. Off-the-plan apartments are especially appealing to foreign investors as they meet FIRB requirements, offer modern amenities, and often come with depreciation benefits.

 

Broader Investment & Lifestyle Appeal

Beyond the numbers, Perth’s qualitative advantages make it a holistic investment destination.

 

A. Lifestyle & Liveability

Ranked among the world's most liveable cities, Perth is renowned for its relaxed outdoor lifestyle, beautiful beaches, and sunny climate. A growing cultural and culinary scene adds to its vibrancy, making it an attractive place to live, not just to invest.

 

B. Education Hub

For families in Singapore considering future education options, Perth is home to world-class institutions like the University of Western Australia (UWA), Murdoch[3]  and Curtin University. The presence of these universities attracts a large international student population, driving strong and consistent demand for rental accommodation in surrounding suburbs.

 

C. Connectivity & Proximity to Asia

Perth's geographical position offers a distinct advantage. It shares a similar time zone with Singapore, making the management of an investment property far more convenient than properties in Europe or North America. Direct flight connections further enhance this ease of access for site visits and management.

 

Strategic Considerations & Compliance for Foreign Investors

A successful investment in Perth requires careful attention to the regulatory and tax environment.

FIRB Compliance: All foreign persons must apply to the FIRB for approval before purchasing any residential real estate in Australia. The process is straightforward for new dwellings.

Foreign Buyer Stamp Duty Surcharge: Be aware that Western Australia imposes a 7% Foreign Transfer Duty on the dutiable value of residential property purchased by foreign buyers. This is in addition to the standard transfer duty.

As highlighted in a Savills Singapore comprehensive guide, engaging with experts who understand these nuances is critical to ensure a smooth and compliant transaction. Professional advice can help you structure your purchase correctly and understand all associated costs, including stamp duty, holding costs, and potential Capital Gains Tax (CGT) upon sale.

 

Conclusion: Seizing Perth's Property Potential

Perth's property market in 2025 presents a compelling and timely opportunity for Singaporean investors. Its strong market fundamentals, clear affordability advantage, and positive long-term outlook create a powerful investment case. The city’s sustained population growth, robust economy, and inherent liveability position it as a dynamic yet stable choice for deploying overseas capital.

The key to success lies in strategic decision-making and a thorough understanding of the regulatory landscape. By focusing on permissible new dwelling and development opportunities and engaging with trusted advisors, you can confidently capitalise on the immense potential that Perth has to offer.

 

Ready to explore the opportunities in Perth’s dynamic property market?

The landscape for international investment is constantly evolving. Navigate it with confidence. Contact Savills’ International Residential Sales team today for a personalised consultation and discover how you can add this high-growth market to your portfolio.

 

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Footnotes:

¹ Here Property, "Perth Property Market Predictions 2025," April 2025.

² Satterley, "Best suburbs to invest in Perth," referencing realestate.com.au data.

³ Australian Bureau of Statistics, "National, state and territory population," March 2024.

⁴ Government of Western Australia, "2025-26 State Budget: Budget Paper No. 3," May 2025.

⁵ Australian Bureau of Statistics, "Labour Force, Australia," latest release data.

⁶ Centre for Population, "National, state and territory population, March 2024," September 2024.

⁷ REIWA, "Perth Metro Market Update," data retrieved September 2025.

⁸ Here Property, "Perth Property Market Predictions 2025," April 2025.

⁹ RentWest, "Perth has the best rental yields in the country."