Which Australian state has the fastest-growing population?
New data has shown one state saw remarkable population growth across 2022 – and the reasons for the boom may or may not surprise you.
Western Australia reported the fastest-growing population across all states and territories in 2022, with a 2.3 per cent jump in population compared to the national average of just 1.9 per cent.
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The finding, from the Australian Bureau of Statistics, comes as no surprise to Peter Gavalas, a buyer’s agent at Resolve Property Solutions, who believes the state capital of Perth is “increasingly an attractive place to live” for many Australians.
Pointing out the city’s relative affordability, strong economy and an enviable lifestyle, Mr Gavalas remarked: “It’s no wonder people are flocking to Perth.
“It offers all the amenities and attractions of a major city, coupled with a fantastic lifestyle, without many of the downsides such as inadequate infrastructure, long commutes and unaffordable housing.”
He noted that Western Australia’s economy is significantly contributing to the population boom, with the 2023–24 state budget forecasting growth of 4.25 per cent, while the record-low employment rate (3.6 per cent in June) means skilled workers are in high demand.
Beyond that, Mr Gavalas also acknowledged that the new ability for many Australians to work remotely means new opportunities are opening up in the west for many east-coast dwellers.
“The appeal increases when you consider that housing affordability is a big problem in many of our capital cities. But it’s much easier to get on the property ladder here in Perth, with a median dwelling price that’s well within reach for most people,” he quipped.
To put that into perspective, CoreLogic reported that the median dwelling price for Perth properties was just $598,000 in June – a world away from the $1.082 million median dwelling price in Sydney.
A boost in new arrivals is having positive flow-on effects to the local property market.
Mr Gavalas cited recent forecasts from Westpac that anticipates annual property price growth of 8 per cent for the city this year, followed by another 8 per cent lift in 2024.
But with heightened demand comes a different problem – the issue of supply.
The number of properties listed for sale on state marketplace REIWA.com fell to a 13-year low in June, with this supply crunch also mirrored in the rental market.
A city-wide vacancy rate of just 0.6 per cent will hopefully be improved as investor activity bolsters rental supply over the coming months, seeking out affordability and yields.
The buyer’s agent reported that he is “getting lots of interest from interstate investors drawn to Perth’s strong fundamentals and attractive pricing, which is reflected in an increasing level of investor borrowing activity.”
