Perth Business Prices Surge by 19.5%: A Closer Look at Market Dynamics and Investment Opportunities

by Vanessa Lovie 8th of August, 2024

Perth is rapidly emerging as a prime destination for business investment in Australia, driven by strong economic growth and rising confidence in the market. This trend is reflected in the significant 19.5% increase in average business listing prices on Bsale, positioning Perth in front of other major cities of Brisbane, Melbourne, and Sydney in terms of market attractiveness.

Market Analysis: 19.5% Rise in Average Business Sale Price

A close look at average business listing prices from 2022 to 2024 reveals a significant upward trend across major Australian cities, with Perth leading the way. In Perth, the average listing price for businesses soared from $598,787 in 2022 to $715,592 in 2023, representing a remarkable 19.5% increase and giving Perth the highest average-priced business price.

The number of businesses for sale in Perth increased by approximately 8.62% from 2022 to 2024, growing from 1,033 listings in 2022 to 1,122 listings in 2024. This reflects a steady rise in market activity and interest in the Perth business landscape

The total market value of business listings in Perth increased by approximately 29.80% from 2022 to 2023, rising from $618 Million in 2022 to $802 Million in 2024. This significant growth highlights the increasing value and attractiveness of the Perth business market.

Perth’s Economic Growth: A Strong Foundation for Investment

Perth’s business environment is bolstered by the broader economic growth in Western Australia. Recent data indicates that Western Australia's economy grew at twice the pace of the national economy in 2023, with a 4.7% increase in State Final Demand, compared to a national growth rate of 2.3%, and even surpasses Queensland, the next best-performing state, which recorded a 2.9% growth. This impressive growth is fueled by strong business investment, household consumption, and government spending, reflecting the state’s robust economic fundamentals.

A key driver of this economic strength is WA's labor market, the tightest in Australia, with an unemployment rate of just 3.7%. This tight labor market reflects the high demand for skilled workers, particularly in sectors like mining, technology, and construction. This demand has fueled significant business investment, contributing to the state's overall economic vitality.

Household consumption in WA grew by 0.8% in the June quarter, leading all other states and territories. Impressively, household spending has consistently grown over the past 12 quarters since June 2020, a period marked by the COVID-19 pandemic, making WA the only state to achieve such sustained positive growth. This steady increase in household spending, alongside robust business investment, has been instrumental in driving WA's economic expansion.

Moreover, dwelling investment in WA surged by 4.2% in the June quarter, again the strongest in the nation. This growth, underpinned by new dwelling construction, has now been sustained for three consecutive quarters. Since the onset of the COVID-19 pandemic, WA's domestic economy has grown by a cumulative 16.5%, significantly outpacing the national growth of 11.1% during the same period.

Western Australia’s economy has shown remarkable resilience, consistently growing every quarter since June 2020. This resilience is a testament to the state’s ability to weather global economic challenges while continuing to attract significant investment. For investors, Perth offers a compelling opportunity, combining a strong economic foundation with rising business values, particularly in key sectors such as technology, mining, and professional services.

Perth Statistics 2024

Comparative Analysis: Perth vs. Other Major Cities

While Perth’s market has seen substantial growth, Melbourne and Sydney have also experienced increases in average business listing prices. Melbourne’s average price rose from $479,717 in 2022 to $579,684 in 2024, and Sydney’s from $446,671 to $483,888. These rising prices in Melbourne and Sydney indicate that businesses in these cities are commanding higher premiums, likely due to their strong economic environments and stable consumer demand.

Brisbane also saw an upward trend, with a 6.81% increase in average business prices, from $619,949 to $662,183 during the same period. While Brisbane's growth is notable, Perth's dramatic price rise stands out, driven by its expanding role as a hub for innovation, technology, and mining—industries that are crucial to the city's economic dynamism and appeal to investors.

However, the rate of increase in Perth’s business prices suggests a more rapid appreciation, potentially signaling a catch-up effect as the city gains prominence as a business hub. Investors looking for high-growth opportunities may find Perth particularly attractive given its economic trajectory and the upward trend in business valuations.

Current Opportunities

There are 240+ cafes for sale in Perth along with hundreds of other hospitality businesses. Take a look at some of the current businesses for sale in Perth:

Top-Performing Bakery - Huge Net Profit $375k
- Price: $430,000
- Location: Western Australia
- Summary: This established and highly profitable bakery is renowned for its quality baked goods, including artisan bread, pastries, and cakes. Located in a prime area, it has a loyal customer base and strong sales, offering excellent growth potential for buyers interested in the food industry.
- View Listing
Thriving Hair Salon In Prime Location
- Price: $60,000
- Location: South Perth
- Summary: This is a turnkey business waiting for the next owner to step in and continue the success story. Whether you're an experienced salon owner looking to expand or a passionate entrepreneur ready to dive into the Hair and Beauty Industry.
- View Listing
Wholesale - Retail Of High End Quality Gifts For All Special Occasions
- Price: $250,000 + SAV
- Location: Perth, WA
- Summary: This versatile family business established since 1986, under present owner since 2016 can be relocated to any state or country, offering unparalleled flexibility and potential.
- View Listing
Lawnmowing Retail And Repair Business
- Price: $380,000 WIWO
- Location: Perth, NOR, Western Australia
- Summary: Established North of the river easy to Manage and run for those who are mechanically minded.
- View Listing

Is Now the Time to Buy in Perth?

Perth’s rising business prices reflect a broader trend of economic growth and increased investor confidence in the city’s future.

As Western Australia continues to outpace national growth rates, Perth is solidifying its position as a key market for business investment. For investors, the combination of strong economic fundamentals, a thriving innovation ecosystem, and rising business values makes Perth an increasingly appealing destination. Whether comparing to other major cities like Brisbane, Melbourne, or Sydney, Perth stands out for its rapid growth and the opportunities it presents in an evolving Australian business landscape.

* Please note that the statistics and data presented in this article are based on user-submitted information. While efforts have been made to ensure accuracy, the figures may not fully reflect official or comprehensive market conditions. Readers are encouraged to verify the information independently and consider potential discrepancies when making decisions based on this data.

Tags: business for sale business owner western australia perth trends statistics