The livability of a city or state refers to how suitable it is for people to live in. It considers factors such as the quality and availability of housing, safety, security, accessibility to health care, education, transportation, job opportunities, the local environment and climate, and the overall cost of living.

According to Zaki Ameer of DDP Property Perth Buyers Agents “A high livability score means that the city or state is well-suited for people to live in and has many amenities. Since Perth meets these criteria, it’s a great place to live.”

But you don’t necessarily have to live there. Instead, you can invest in Perth properties and make a passive income off rentals. Let’s discuss how.

Which Factors Determine Livability?

The criteria for livability may differ from person to person, but some factors are universal in determining how livable a city or region is. These factors may be objective or subjective.

Objective Factors

The five objective factors determining livability are:

  • Climate: What is the weather like? Does it offer a comfortable range of temperatures throughout the year? Is there adequate rainfall or snowfall to sustain vegetation and water sources and prevent natural disasters?
  • Local Infrastructure: Does the city have a reliable public transportation system, roads, bridges, an airport, and functioning utilities (power, water, and sewage)?
  • Safety: Are there sufficient law-enforcement personnel and measures to ensure safety? Does the city have low crime rates? A safer city is considered livable even if it lacks in some other respects.
  • Environment Quality: With an increased awareness of the importance of sustainability, residents also evaluate the environmental quality of their cities. It includes air pollution, water pollution, and noise pollution levels.
  • Access to Education and Healthcare: A city with good educational and healthcare facilities scores high on the livability index.

Subjective Factors

In addition to these objective factors, subjective criteria such as an individual’s personal likes and dislikes can also come into play. For instance, some people may value a city’s cultural opportunities and attractions, while others prefer its nightlife.

Some may look for green spaces, recreational outlets, or entertainment options. Other objective factors include spiritual or traditional connections, connection to friends and family, and cost of living.

An Influx of People to Western Australia

Before the pandemic, Western Australia had a negative interstate migration, which means that more people moved out of the state than moved into it.

However, since the pandemic began, there’s been an influx of people from other regions on the west coast. The area experienced a 1.2% population growth during the 2020 to 2021 period. It’s also forecasted that the region will see a population burst of up to 3.2 million by 2032-33.

Most of the population of Western Australia lives in Perth. In fact, the city’s population is forecasted to be 2.6 million by 2032.

Premier Mark McGowan, the 30th premier of Western Australia, credits this migration to the strong pandemic management by the state. Since Western Australia had fewer restrictions, it became an attractive destination for people who wanted to escape the restrictions of their state.

These new people are looking for places to live, and they’re turning to Perth’s real estate market. The influx has caused an increase in demand for rental properties, pushing up prices and making it a great investment opportunity.

Most Livable City in Australia

The population spurt shouldn’t come as a surprise, considering Perth was named the most livable Australian city per Ipsos Life in Australia study. The study considers 16 livability attributes and surveys thousands of Australians about their preferences.

The city scored well for its natural beauty, environmental sustainability, education opportunities, and public transport system. The top three attributes most people list when deeming a city livable are:

  • High-quality health services
  • Affordable and decent housing
  • Safety

The fourth and fifth attributes are natural environment accessibility and good job prospects. Perth has all of these attributes, making it a great investment option.

Besides Australian studies, international surveys have also found Perth to be quite livable. The Global Liveability Index 2021 put Perth in sixth place as the most livable city in the world. The city had high scores for infrastructure, healthcare, and education.

Increase in Cost of Renting

Perth was the only capital city in Australia to record a rental price increase during the last quarter of 2022. The city’s rental price increased by 3.2% during the quarter, with 1.2% in December alone. Other capital cities experienced a decrease in rental prices, with Sydney seeing a 0.2% decrease and Adelaide with a 2.2% lower rental price.

Per this data, there has been an 11.2% increase in the cost of renting in Perth. That averages to a whopping $553 a week. These figures are a goldmine for potential investors who want to take advantage of the rising rental prices.

How Does Livability Influence Investment Potential?

The livability of a city or neighbourhood can significantly influence its potential for investment. In general, cities and areas with a high livability rating tend to have higher property values, better amenities, and increased safety.

The higher livability rating also attracts more businesses and people to move into the area, leading to further economic development. Investors can benefit from this increased demand and higher property values in many ways.

Renting and Flipping Properties

Investors may be able to purchase properties at lower prices, rent them at higher rates, or flip them for a larger profit. Additionally, they may be able to sell properties in the area faster and at a higher price due to the increased demand.


Investors may also benefit from businesses expanding in the area and providing more job opportunities. It can lead to increased demand for housing, warranting higher rental rates or more profit when flipping houses.

Low Vacancy Rate

Perth has one of the lowest vacancy rates in the country at 0.5%, a drop from the previous year. The vacancy rate means that investors can expect to have less competition when purchasing properties and more stability in rental income.

With such a low vacancy rate, renters will compete for available properties, willing to pay higher rental rates.


The increase in livability also leads to an increase in security, which can be an attractive incentive for families and single females to settle in the area. The potential for higher rental income and longer-term tenants is improved due to increased security – a plus for investors.

The Takeaway

Summing up, Perth is an excellent city to invest in. Its livability rating, combined with its increasing rental prices and low vacancy rate, make it a perfect opportunity for long-term investment.