The Untapped Potential of Western and South Australian Property Markets

When most investors think about where to buy property in Australia, the usual suspects come to mind: Sydney, Melbourne, or Brisbane. But while these cities continue to draw attention, they may not offer the same upside they once did. Quietly, and backed by solid fundamentals, Western Australia and South Australia are emerging as two of the most promising markets in the country.

The question is:

Are property investors overlooking the real opportunities in Perth and Adelaide?

This blog explores the factors driving growth in these markets, from population shifts and affordability to strong yields and infrastructure, and why they may be well worth your attention in 2025.

1. Rising Population = Rising Demand

Let’s start with one of the biggest drivers of property value: population growth.

Western Australia currently leads the country in population growth, recording a 3.1% increase over the 12 months to March 2024. Victoria follows closely behind with a 2.7% rise in the same period, making it the second-fastest growing state.

What’s behind these numbers?

For Victoria, the rebound comes after a pandemic-driven slowdown and is largely fueled by a disproportionately large share of overseas migration, accounting for around 30% of the state's growth. This influx helped reverse declines and revitalize demand in Melbourne and regional markets.

With population growth shaping demand so quickly, many investors are now seeking guidance from an investment property buyer's agent to ensure they’re picking the right suburbs before prices move even higher.

2. Affordability Is Still on the Table

High property prices in the eastern states have priced many buyers out. But in WA and SA, the door is still open.

As of July 2025, CoreLogic’s Home Value Index shows:

• Perth’s median house price: $684,000
• Adelaide’s median house price: $882,157
• Sydney’s median house price: $1.83 million
• Melbourne’s median house price: $983,000

For investors, this means you can enter the market at a much lower price point while still targeting areas with high demand, capital growth, and rental performance. 

But affordability alone doesn’t guarantee success; many buyers fall into common traps when investing in new markets. 

This is why experts often highlight the top mistakes investors make without a buyer’s agent as a reminder to do thorough research and seek the proper guidance.

3. Rental Yields Are Among the Best in the Country

Affordability is one part of the equation. Strong returns are the other. Right now, both Perth and Adelaide are delivering some of the highest gross rental yields in the country:

• Perth: 4.9%
• Adelaide: 4.6%
• National average: 3.5%

These figures are especially attractive to cash-flow-focused investors. In addition, vacancy rates are near record lows, 0.7% in Perth and 0.8% in Adelaide, which means rental properties are being snapped up quickly and landlords have more control over pricing.

4. Infrastructure Investment Driving Long-Term Growth

Government spending plays a significant role in shaping property markets, and both WA and SA are seeing major infrastructure upgrades that are boosting liveability and economic activity.

Some standout projects include:

• WA: $9 billion committed to public transport and road upgrades, including the Metronet expansion and Tonkin Gap Project.
• SA: $12.9 billion toward the North-South Corridor, the largest road infrastructure project in Adelaide’s history.

These developments bring more than just convenience; they open up new suburbs for growth, reduce travel time, and make previously overlooked areas more attractive for both buyers and renters.

5. Suburbs with Strong Growth Signals

Beyond city-wide data, some specific suburbs in WA and SA are showing clear signs of strong future performance based on infrastructure access, lifestyle appeal, and affordability.

In Perth:

• Byford: With the upcoming Metronet extension and a growing number of new housing estates, this outer suburb is becoming increasingly attractive to families and first-home buyers.
• Wangara: A mixed-use suburb gaining attention for its industrial growth, proximity to employment hubs, and potential rezoning opportunities.

In Adelaide:

• Munno Para: Located in the northern growth corridor, this suburb is benefiting from new retail developments and expanding transport links.
• Port Noarlunga: A coastal suburb drawing in both lifestyle-driven homeowners and tenants, offering strong rental demand and scenic value.

These areas combine key growth fundamentals such as proximity to infrastructure projects, affordability, and increasing tenant appeal, making them hotspots worth watching for investors targeting value and long-term gains.

6. Controlled Supply Means Less Risk

Oversupply can hurt rental yields and capital growth, but WA and SA are showing a healthier balance between supply and demand.

As of June 2025, building approvals have slightly declined in both states, down 2.1% in WA and 1.8% in SA, helping to stabilize market activity. That means investors can be more confident about steady growth and price resilience.

Conclusion: A Market Hiding in Plain Sight

While investors continue to crowd into the same hotspots, Western Australia and South Australia are quietly laying the groundwork for sustainable, long-term property growth.

They offer what many other markets can’t:

• Lower buy-in costs
• Strong rental yields
• Low vacancy rates
• Government-backed infrastructure
• Population growth that supports rising demand

If you're looking to grow your portfolio in 2025 and beyond, it may be time to look west or south, not just east.

And when you’re ready to make a move, PropXperts can help you identify the right opportunities and make smarter, data-backed investment decisions.