Some people perceive Perth as an expensive city because of its high shipping rates and high construction costs. But compared to some major Australian cities, Perth is actually cheaper.

Perth isn’t the most expensive city in Australia, but it does rank among the four most expensive cities to live in, along with Sydney, Melbourne, and Brisbane.

If you’re living in Perth or thinking of moving to Perth, you may be wondering about how much it costs to live here.

In this article, we’ll be comparing the costs of living in Perth to other major Australian cities.

Why Some Perceive Perth as an Expensive City

Some people perceive Perth as an expensive city because of its high shipping rates and high construction costs.

Perth’s High Shipping Rates

Compared to other Australian states and cities, Perth is a fairly isolated city. This may contribute to higher shipping fees.

However, high shipping fees aren’t a Perth-only phenomenon. In fact, according to this report, all of Australia has seen a surge in shipping fees because its ports are getting high traffic and high demand with limited supplies.

Perth’s High Construction Costs

A recent survey done by Turner and Townsend has found that Perth is one of the most expensive places to build in Australia, with the average cost at $4,109 per square metre.

This high construction cost may contribute to the rise of housing prices in Perth. However, this isn’t the only reason for the city’s high housing cost.

In fact, all of Australia has seen an increase in house prices by 7.5 per cent in 2020, according to this real estate report.

While Perth may have high housing prices, it’s still cheaper than other major Australian cities like Melbourne, Sydney, and Brisbane.

How do housing costs in Perth compare to other Australian cities?

While Perth has high median prices for homeownership and relatively high rental rates, it’s still cheaper than other major Australian cities like Melbourne, Sydney, and Brisbane.

However, Perth is currently more expensive than Melbourne in 2022.

The Surge of Rental Rates in Australia

According to this SBS report, in 2022 alone, it’s been getting more difficult for Australians to find rentals that cost $400 or below per week. In Perth, the median price for rentals is $523 for houses and $460 for apartments.

This is a significant increase from the average rates in December 2021, which were $460 a week for houses and $390 for apartments.

According to data from Soho, rent in Perth has been steadily increasing for the past five years. However, the jump in prices from 2021 to 2022 deviates from the usual pattern in the last five years.

This pattern, as seen in the tables below, isn’t exclusive to Perth but occurs in other major Australian cities as well.

Average Weekly House Rent in Australian Cities 2017–2022

Average Weekly Apartment Rent in Australian Cities 2017–2022

With all the data presented, Perth is still relatively cheaper than other Australian cities. However, you may want to explore your options with a financial advisor before ultimately deciding whether you want to move to the city.

Housing costs are only one piece of the puzzle, and it’s still important to look into other factors that go into the cost of living. To put things into better context, it’s best to compare Perth’s cost of living with other Australian cities.

How does the cost of living in Perth compare to other cities in Australia?

It’s cheaper to live in Perth than in other cities in Australia especially because the average weekly cost for groceries in Perth ($185.33) is lower than the national average ($239.53), as noted by Budget Direct.

Below is a table of the average cost of groceries in four different Australian states—Western Australia, Queensland, New South Wales, and Victoria.

Average Cost for Groceries around Australia

Please note that these rates are the average rates for a household, so your personal expenses can still vary if you’re living on your own.

Transportation Costs in Perth

Transportation and recreation costs are relatively affordable in Perth as well, thanks to public transport. You’ll most likely spend $5 or less for standard fees, but you’ll have a 10% discount if you have a SmartRider card that costs an initial $10.

Perth also makes public transportation easier for seniors, pensioners, and students, with the first two being entitled to receive a free SmartRider card, while students can get the card for $5 and have student rates on school days.

Thus, it’s not a requirement to have your own car, as you can easily rely on Perth’s public transportation system.

Why is Perth a good place to live in?

Perth is a good place to live in because of its lower weekly costs of living compared to other Australian cities. In a report from The Department of Treasury, Perth has the cheapest average household expense. 

It’s $513 cheaper than Melbourne, the city with the highest average household expenses per week.

This difference from other Australian cities gives you more space in your budget for recreational activities like stand up paddle board or hot air ballooning. 

If you’ve got kids, the lower expenses in Perth mean you may even be able to send them to a private school.

Takeaway

While Perth is an expensive city to live in, it’s not the most expensive city in Australia. 

Other than living expenses, Perth’s population density is lower than other Australian cities such as Melbourne, Adelaide, and Sydney.

The cost of living often increases with the increase in the population. This may be aggravated if the demand for essentials rises in a way that may not be proportionate to the available supply.

Fortunately, Perth’s population density is at a safe level, at 317.7 per kilometre square. Plus, there’s an adequate supply for people to purchase, thus keeping food and average living costs lower than other cities despite having higher shipping fees.

Perth may be expensive in certain aspects—shipping fees and building costs—it still remains one of the cheaper capital cities to live in Australia.