Building a Holiday Home in Perth vs. New South Wales

Crafting Your Dream Escape: Building a Holiday Home in Perth vs. New South Wales

The allure of owning a holiday home in Australia is a dream many aspire to. With its diverse landscapes, vibrant cities, and unique wildlife, Australia offers a variety of experiences for every traveler. 

Focusing on New South Wales (NSW) and Perth, this article explores the nuances of building a holiday home in these popular destinations. Each location offers its own unique charm and opportunities for potential homeowners.

Building a Holiday Home in Perth vs. New South Wales
Building a Holiday Home in Perth vs. New South Wales

New South Wales: A Dream Destination for Travelers

New South Wales is renowned for its spectacular natural beauty, ranging from pristine beaches to lush hinterlands. It’s a destination that resonates with travelers seeking both relaxation and adventure.

Current Trends in Holiday Home Construction in NSW

  • Market Resilience: Despite the challenges faced by the Australian construction sector in recent years, including rising interest rates and construction costs, NSW’s construction market has shown resilience. The region has seen a return to construction activity levels similar to those in 2019, indicating a recovery from the downturn experienced during 2021-22.
  • Backlog of New Homes: There remains a significant backlog of new homes to be completed in NSW. This suggests that the construction activity will continue well into the second half of 2023, maintaining a steady pace in the housing sector.
  • Long-term Fundamentals: The fundamental factors driving construction in Australia, including NSW, remain strong. Population growth, driven by migration, and low rental vacancies contribute to a robust market for new home construction.

These trends suggest that while the NSW construction sector has faced challenges, it has also demonstrated a certain level of stability and potential for growth, making it an attractive destination for building a holiday home.

Perth: A Comparative Perspective

Perth, known for its beautiful coastline and vibrant urban life, stands as an appealing alternative for holiday home construction. Its unique landscape and laid-back lifestyle make it a standout choice for many.

Current Trends in House and Land Packages in Perth

  • Market Growth: Perth’s property market has shown remarkable resilience and growth in 2023. After a phase of historic growth in the previous years, the market witnessed a strong rebound this year. Forecasts from major banks like NAB and Westpac indicate an upswing in Perth property prices in 2023 and 2024, with expectations of 11.9% growth in 2023 and continuing growth into 2024.
  • Rising Prices: The median house price in Perth is forecasted to rise steadily. For instance, a 4% increase in house prices is expected by 2024/25, potentially reaching $679,000 by June 2025.
  • Rental Market Strength: Perth’s rental market is thriving, with extremely low vacancy rates (as low as 0.4%) and rising rents, which is a positive sign for potential investors.

Comparative Analysis: Lifestyle and Travel Considerations

When comparing New South Wales and Perth for building a holiday home, several factors come into play

  1. Climate: NSW offers a diverse range of climates, from the balmy coastal regions to the cooler highlands. Perth, on the other hand, is known for its warm, Mediterranean-like climate.
  2. Accessibility: NSW, with Sydney as its hub, has excellent connectivity domestically and internationally. Perth, while more isolated, is well-connected within Western Australia and has good international links.
  3. Attractions: NSW boasts a wide array of attractions including iconic beaches, the Blue Mountains, and cultural landmarks in Sydney. Perth offers stunning beaches, a vibrant arts scene, and unique natural landscapes like Rottnest Island.
  4. Suitability for Travelers: NSW tends to attract a diverse range of tourists due to its variety of attractions. Perth, with its laid-back vibe and unique offerings, appeals to those looking for a blend of urban and natural experiences.
  5. Investment Potential: The robust growth in Perth’s property market, coupled with the resilience in NSW’s market, makes both locations promising for holiday home investments. Perth’s affordability and low vacancy rates in rentals make it an attractive option for investors.

Pros and Cons from a Traveler’s Perspective

NSW Pros: Diverse attractions, strong cultural appeal, and a variety of landscapes.

NSW Cons: Higher cost of living and potentially higher property prices.


Perth Pros: Affordable property market, strong rental demand, unique lifestyle, and natural attractions.

Perth Cons: More isolated in terms of geography, which might limit accessibility.

Both New South Wales and Perth offer unique advantages for building a holiday home, with considerations varying based on climate preferences, lifestyle choices, and investment potential. The decision ultimately hinges on personal preferences and the type of holiday experience one seeks to create.

Financial Aspects for Travel Enthusiasts

When building a holiday home in either New South Wales or Perth, several financial aspects are crucial for travel enthusiasts to consider:

Investment Potential

New South Wales: The property market in NSW, especially in prime areas like Sydney, is generally high-priced, which may translate into higher initial investment costs. However, the high demand for holiday rentals, especially in tourist hotspots, can potentially offer good returns on investment.

Perth: With its more affordable property market and recent growth trends, Perth presents a potentially lower barrier to entry for holiday home investments. The rising median house prices and strong rental market, especially post-pandemic, indicate a promising investment potential.

Rental Opportunities

New South Wales: The state’s popularity with both domestic and international tourists means there’s a consistent demand for short-term holiday rentals. Coastal areas and regions close to major attractions are particularly lucrative for holiday lets.

Perth: The low vacancy rates in Perth’s rental market suggest a robust demand for rental properties. This demand, combined with Perth’s growing popularity as a holiday destination, could provide steady rental income for holiday home owners.

Navigating Legalities and Regulations

New South Wales

  • Building Regulations: Complying with the Building Code of Australia (BCA) is mandatory. This includes regulations on building design, construction, fire safety, energy efficiency, and sustainability.
  • Council Approvals: Depending on the location and scope of the project, council approvals may be required. This might include development consents and construction certificates.
  • Holiday Rental Legislation: NSW has specific laws for short-term holiday letting, including a code of conduct for hosts and guests, and fire safety standards.


  • Building Codes: Similar to NSW, adherence to the BCA is required in Perth. This includes regulations for structural integrity, fire safety, and accessibility.
  • Local Council Requirements: Each local council in Perth may have its own set of regulations regarding building and development. It’s essential to check with the local council for specific requirements like planning approvals and building permits.
  • Rental Regulations: Western Australia has regulations governing rental properties, which would apply to holiday homes if they are rented out. These regulations cover aspects such as safety standards, leasing agreements, and tenant rights.

Understanding these financial and legal aspects is crucial for anyone looking to build a holiday home in either New South Wales or Perth. It’s advisable to conduct thorough research or consult with experts in property investment and law to navigate these considerations effectively.

Making the Decision: What’s Best for Travelers

Choosing Between New South Wales and Perth for a Holiday Home

The decision between building a holiday home, or even relocating in New South Wales or Perth largely hinges on personal travel preferences and lifestyle choices:

Lifestyle Preferences

Nature and Beach Lovers: NSW offers diverse natural landscapes from stunning beaches to lush hinterlands. Perth boasts beautiful beaches and a relaxed coastal lifestyle.

Cultural and Urban Enthusiasts: For those who prefer a bustling city atmosphere, NSW, with Sydney as its heart, offers a vibrant urban life. Perth, while more laid-back, has a growing arts scene and urban culture.

Travel Accessibility

For international travelers or those seeking easy connectivity to other parts of Australia, NSW provides better options.

Perth, while more isolated, offers unique experiences and is ideal for those looking to explore the West Coast.

Investment and Rental Opportunities

If investment potential is a priority, both NSW and Perth offer different benefits. NSW has a strong rental market but at a higher initial investment cost. Perth offers a growing market with more affordable entry points.

Often, the decision comes down to personal connection or affinity to a place. Whether it’s family ties, previous travel experiences, or simply a preference for a certain lifestyle, this can be a guiding factor.

Wrapping Up

Building a holiday home in either New South Wales or Perth is a dream for many. Both destinations offer unique attractions, lifestyle choices, and investment potentials. New South Wales caters to a variety of tastes, from natural beauty to urban excitement, but with a higher cost. Perth offers a more laid-back lifestyle with beautiful beaches and a burgeoning cultural scene, all at a relatively lower cost.

Ultimately, the choice depends on your personal preferences, lifestyle aspirations, and financial considerations. It’s important to weigh these factors carefully and consider seeking advice from real estate and legal experts in your chosen location to make an informed decision.

Perth CBD During Sunset
Perth CBD During Sunset