Perth BA ditches WA for next boom market

Hughes said the Perth market had gone through major transitions over the past decade.

He said the City of Light transitioned from a high supply and low demand environment, with straightforward buying and few clients, to one of intense demand, tight supply, and an overwhelming client load.

Hughes said the shift in the Perth market also required a change in mindset from buyers.

“We used to negotiate hard without urgency; if we missed a property, we’d simply move on, waiting for the next best deal in a flat market.”

“We then moved to a hotter market and we had to be more aggressive on price and shift focus from winning negotiations to simply securing good properties without overpaying,” Hughes said.

He said that over the last couple of years, Perth had been the “hottest market” in the country, attracting a lot of interstate investors.

While Perth still offers good investment opportunities, Hughes said that declining affordability has prompted buyers, especially those with lower budgets, to shift to other markets.

“Investors are seeing value in other locations, and we are too, as we’re buying in other locations around the country, especially in Victoria,” he said.

Despite the current taxes affecting investors in Victoria, Hughes said he was confident that the market would continue its recovery, providing pockets of opportunities.

He said that while Victoria has higher stamp duty, land tax, and lower yields than Western Australia, it’s at the bottom of the cycle with a more substantial growth upside.

“I think the negatives have been overblown and they’re not to be ignored, investors need to be aware of the pros and cons of Victoria as it’s not for everyone,” Hughes said.

“If you’ve got a larger budget and you’re a bit yield-sensitive, I’d probably still stay in Perth at the moment.

“But for very growth-focused investors, I think Victoria is going to have the best of the major capitals. It’s going to have the best growth upside in the short to medium term.”

Recent Cotality data showed that Melbourne recorded a 0.5 per cent dwelling price growth in June to a median price of $796,952, a 1.1 per cent quarterly increase.

“If you can carry some negative gearing, if you’re that type of investor who’s not too cash flow sensitive, then I’m very bullish on Victoria, with regional areas and Metro Melbourne seeing growth over the next three to five years.”

With over 15 years in the real estate industry, Hughes urged investors to do their due diligence – even when working with buyer’s agents – warning that many investor-targeted properties miss the mark.

Recently named Property Investment Adviser of the Year at the 2025 PIPA Awards for Excellence, Hughes suggested avoiding trendy “hotspot” suburbs and prioritising outcomes over volume.

Ultimately, he urged investors who are ready to buy to act quickly as further rate cuts will fuel demand, especially in affordable markets like Victoria.

“Early buyers and investors are already igniting growth, and upcoming policy changes will add more competition next year,” he concluded.

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