Q2 2019 Research
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RESIDENTIAL RESEARCH LIVING & STUDYING BUYING PROPERTY WHY INVEST? Contents 1. Perth—The lifestyle city page 2 2. Living in Perth page 4 3. Studying in Perth Whilst fortunate to tap into world-class page 7 reserves of natural minerals and energy Knight Frank City Wealth Index resources, Perth has evolved to grow an 4. Housing in Perth 2018, Perth equally important highly educated, skilled 314 international cities ranked in each category page 10 and productive workforce strengthened 5. Renting in Perth by innovation and cultural diversity. This Ranking page 11 guide focuses on living, studying and buying residential property in Perth. Wealth 63 6. Buying in Perth Investment 88 page 12 Liveability Lifestyle 142 7. Buying as a First Home Buyer Perth ranked in 12th place of the World’s Future 56 page 13 Most Liveable Cities in 2018, according OVERALL 53 to the Economist Intelligence Unit, as 8. Buying as a Foreign Investor shown in Table 1. The index is based on page 14 30 factors spread across five areas: 9. Owning in Perth stability, infrastructure, education, health page 19 care and environment. 10. Selling in Perth page 20 Perth was also 13 places higher (63rd) than Brisbane for ‘wealth’. The two Most Liveable Cities 2018 Feature: elements that contributed to this Index of 140 global cities based on Stability, category include the number of 10 reasons to invest in Perth Infrastructure, Education, Health Care page 22 & Environment households earning US$250,000 in 2017, and the other being how fast this price 1. Vienna, Austria bracket is expected to grow over the next 2. Melbourne, Australia five years. 3. Osaka, Japan ‘Investment’ was the third category with double-digit ranking for Perth, at 88th 12. Perth, Australia place. This was based on the annual average private investment into property over the two-year period to the end of 2017 and the average number of nationalities investing. This is likely to increase in the 2018 results given the recent increased investment in WA. The City Wealth Index ‘lifestyle’ category, ranked Perth in 142nd Perth ranked in the top quintile of the position. This was based on cities with cities that matter to the ultra-wealthy in the most top 100 universities, the number the Knight Frank City Wealth Index 2018, of five-star hotels and the highest ranking in 53rd spot. average spend per overnight visitor. With strong future prospects, and several The best performing category for Perth hotels under construction due by 2020, was ‘Future’ (56th place), ranking higher this will boost tourism opportunities for than Brisbane (57th), based on the the city, and Perth’s global ranking in forecast of economic performance. future years. 2 FOCUS ON PERTH Q2 2019 RESEARCH International be found at the intersection with Visitors Murray Street. FAST FACTS The balmy climate of Perth allows for a One of the largest diamond mines in the laid-back environment with locals soaking world—the Argyle Diamond Mine—is PERTH up the weather in the many cafés along located in the far north-east of Western vibrant shopping strips, down at the Australia (WA), close to the border of the • Perth is the state capital of beach, bushwalking or riding bikes with Northern Territory. The mine is the largest Western Australia (WA). the family amongst the native flora and diamond producer in the world by • Australia’s fourth largest capital fauna or relaxing in one of the local volume, and is also the only known city, with approximately 2.04 parklands. Most prominent is Kings Park significant source of the elusive pink million residents estimated adjoining the city skyline, with a high diamonds. Due to Perth’s proximity to the living in the Greater Perth vantage point over the Swan River and mine, diamonds are often discounted and region in 2017. Perth CBD. Watching unrivalled sunsets abundant in local jewellers. is very picturesque, being the only • Located on the West Coast, with a geographic area of Australian capital city to enjoy the sun International visitors to WA increased by 6,400 sqm. setting on the ocean. 2.1%, to reach 963,800 visitors, in the year ending December 2018. • Perth weather in the summer Perth accommodates a vast array of months is a hot, mean restaurants, fashion brands, independent The most number of international visitors maximum temperature of 31°C, retailers, as well as, shopping malls. In came from the United Kingdom (15%), while the cooler winters have a mean minimum of 8°C. the Perth CBD, Hay Street Mall and Malaysia (11%), Singapore (10%), United Murray Street Mall both comprise States (7%), New Zealand (7%) and • Most daily sunshine is 13 hours pedestrian-only shopping districts, while China (6%) as shown in Figure 1. in the month of January. Perth retail strips and arcades feature a diverse generally has more sunny days range of traders. Looking at the top 10 ranked international than other Australian capital markets to WA over this time, there was cities over the year. Traditional department stores like Myer strong growth in the number of additional • Perth operates under the and David Jones are also found here. visitors from Korea (48.3% or equivalent Australian Western Standard King Street, Perth is known as the ‘start to 5,100 additional visitors), Ireland Time (AWST) time zone at all of West End’, famed for international (24.5% or 2,800), Italy (21.3% or 2,400), times of the year. Perth falls luxury brands. Many cafés and bars can and Switzerland (19.8% or 2,300). into the same time zone as capital cities such as Singapore, Hong Kong, Kuala Lumpur, Jakarta, Beijing and Shanghai. International Visitors to Western Australia, by Country of Residence % of total, year ending December 2018 • From Perth, current average flying travel time is approximately four (4) hours to Jakarta, five (5) hours to U.K Singapore, six (6) hours to Malaysia Kuala Lumpur, eight (8) hours Other Asia to Hong Kong, nine (9) hours to Shanghai and 10 hours Singapore to Beijing. Other Europe • Perth is the closest major U.S Australian capital city to Asia, Other Countries allowing easy connection towards the European New Zealand continent. China Germany Indonesia Japan Hong Kong Switzerland 0% 3% 6% 9% 12% 15% 3 Perth’s Demographic Language Other than English, Mandarin (2.3%) was Profile the most common language spoken in a Perth household. Other typical languages Population include Italian (1.4%), Vietnamese (1.0%), Population has been steadily rising in Cantonese (1.0%) and Arabic (0.7%). Perth. Over the year to 30 June 2017, an increase in the estimated resident population was recorded at 1.0% to 2.04 Education million. This is slightly below the overall Perth is a skilled city. A higher proportion PERTH ANNUAL Australian population growth of 1.6%. of people are educated at university level EVENT CALENDAR (22.9%) compared to the Australian According to the Australian Bureau of average (22.0%). In Perth, 16.5% of the JANUARY Statistics (ABS), the Perth population is local student population were studying at • Perth Chinese New Year Fair projected to grow annually by 2.5% to • Perth Cup, Ascot Racecourse university in the 2016 Census, compared 3.6 million persons by 2036. This is • Hopman Cup to the national average of 16.1%. • Australia Day Perth Celebrations based on the assumption of a strong depth of mining activity in WA. FEBRUARY • Rottnest Channel Swim Work • Perth International Arts Festival The most common occupation of Perth’s MARCH Age Distribution residents are in professional services—at • Sculptures by the Sea, Cottesloe Age distribution in Perth is relatively • Mandurah Crab Fest 22.2%—on par with the national average. comparable with the national average— Technicians and trades workers (15.6%), APRIL however, the 20-29 age group trends clerical and administrative workers • Perth Comedy Festival higher at 14.6% against the national • Fremantle International Street (13.6%) and managers (11.5%) were the Arts Festival average at 13.8%. next most common occupations. MAY • Jazz by the Bay Despite WA being known as a mining • Pipeline Challenge Multiculturalism state—the city of Perth is not classified • SunSmart Busselton Festival of Triathlon Perth is a true multicultural city, with as a ‘mining town’. Only 5% of Perth’s 42.7% of residents being born outside of population in 2016 worked in the mining JUNE Australia. The most prominent countries industry, with most miners living in • Albany Classic Motor Event of birth include England (8.6%), New remote towns closer to the mines and JULY Zealand (3.2%), India (2.4%) South Africa commuting each day. • Revelation Perth International Film Festival (1.8%), and Malaysia (1.5%). Almost 46% • Manchester United Friendly of parents of the residents in Perth were Of all the employed people in Perth, 3.8% Game born overseas, exceeding the national worked in hospitals. Other major AUGUST average of 34.4%. This wide diversity has industries of employment included cafés • Good Food & Wine Show encouraged many international and restaurants (2.5%), primary • Kings Park Festival restaurants, schools and cultural education (2.5%) and supermarket and SEPTEMBER activities established within communities. grocery stores (2.4%). • IGA Perth Royal Show • Perth Fashion Festival OCTOBER Religion Travel to Work • Cape to Cape MTB The Catholic religion was practiced by In Perth at the time of the Census 2016, NOVEMBER 22% of Perth residents at the time of the the most common methods of travel to • Perth International Jazz Festival Census 2016, this was followed by work for employed people were by car, DECEMBER Anglican at 13.8%, then Christian with as a driver (64.1%) and car, as a • Swan River New Year’s Eve passenger (4.6%).