Perth’s liveability ranking drops

The annual Global Liveability Index, as decided and researched by the Economist Intelligence Unit, has been released. The main talking point, locally at least, was Perth falling well down in the rankings to number 32 in 2022, despite being in the top 10 last year.

The various rankings that are published around the world are always good for starting conversations and debate on which cities are more liveable than others but, by their nature, they are generally subjective.

However, the Economist Intelligence Unit, which bases its list on measures such as stability, healthcare, culture, environment, education and infrastructure, is better respected than most and local commentators and politicians were very keen to take credit when Perth came in sixth last year.

Perth, like some other cities in Australia and New Zealand, suffered the biggest falls in this year’s rankings. For example, Wellington and Auckland, fell by 46 and 33 places respectively. Both countries benefited in early 2021, when COVID-19 vaccines were scarce and closed international borders kept cases down, helping to keep liveability high. However, this changed as the more infectious COVID-19 variations struck towards the end of last year, making closed borders less of a defence.

In Australia, Western Australia and South Australia were slower to lift restrictions than others albeit, arguably, for good reasons.

As a result, Perth and Adelaide dropped heavily compared with last year, and Melbourne, which dropped its most onerous COVID-19 pandemic restrictions earlier, is once again Australia’s highest-ranked city.

Premier Mark McGowan did not comment directly on the Economist Intelligence Unit rankings, but last year he said the list was a highly regarded measure of the quality of life people enjoyed in major cities around the world.

He made the point this year that WA has the highest annual salary and the lowest average mortgage measures when compared with other states and cities, and reiterated that it was no secret to the people of Perth that our city is the best place to live, work and raise a family despite the ranking.

I may be preaching to the converted, given most readers have chosen to live, work and invest in Perth and WA, but I am confident that Perth will perform much better in next year’s calculations.

We should recognise that COVID-19 and the response to the virus has had many unintended consequences though. Because I tend to view many things through the prism of the property sector, the main unintended consequence has been the negative impact we have seen to the supply of new homes.

It is hoped that as international, interstate and internal restrictions are lifted and we return to a new normal, Perth will once again become one of the world’s most liveable cities, which can only benefit the local property sector.

We should remember that the key characteristics that made Perth one of the most liveable cities remain, even as the COVID-19 restrictions are being reduced or removed completely.

Perth has the strongest economy, the lowest unemployment, major industries and exports, complemented by political stability, excellent healthcare, infrastructure, education and, of course, a temperate climate.

Perth’s geographic location in the Asia-Pacific region, sitting conveniently in a populous time zone that includes key trading partners in China and Indonesia, is another key structural advantage.

The Economist Intelligence Unit list is always interesting reading but, more importantly, people are voting with their feet. WA’s population growth has exceeded that of New South Wales and Victoria and is forecast to continue. All of these factors should ensure demand for homes in this state remains strong.