REIWA President says Perth market is on the move
REIWA President Damian Collins recently provided an overview of the Perth property market at a private function hosted by Vestor Developments and which Samantha Reece also spoke at.
Damian stated that after ten years of difficult times with the Perth property market, the stars were finally aligning and, as he predicted in September 2020, the property market was officially on the move. And as a result, he was the most optimistic he had been since 2014.
The reasons for Perth’s good news, while the other States battle on, is extensive.
Firstly, Perth ranks as the most affordable State nationally, with the median house price now $475,000, the cheapest since 2012. Even Adelaide and Hobart have higher median house prices than WA!
Coupled with interest rates at 2.5% and unlikely to move for another 3 years, Damian advised the attendees that the market was showing signs of getting hot.
“Now if you go to a home open on the weekend and the property is well located and priced, then there are multiple offers,” Mr Collins said.
“Furthermore, sales transactions have picked up volume over the last 4-5 weeks and Perth is now selling approximately 600 properties per week. That represents a 17% increase compared to this time last year.
“The number of properties available for sale is also at its lowest level in ten years, currently at 10,000 properties, when what we would ideally prefer is a balanced market of between 13,000-14,000 listings.
“And like housing, apartment properties available for sale have also fallen by a staggering 16%.”
Damian stated that the rental vacancy rate at just .9% (only the 3rd time in 40 years where the vacancy rate has gone below 1, with the last time in 2007) and rental values up $40/week, all the fundamentals were ripe for the investor sector.
“Perth is currently reflecting the best market fundamentals since 2003 with rental yields at 5%.
“There will undoubtedly be a shortage of rental properties in 2021 and already of the 240,000 rental properties available in Perth, only 2786 advertised properties are readily available. And this spells a looming rental crisis.”
Damian’s data also demonstrated that WA is experiencing strong employment growth, with 10,000 mining jobs predicted by the new year. With unemployment at 6.6%, also the lowest in the country, population growth of 1.5%, as well as the strongest retail sector in the nation, WA is perfectly primed for property growth.
And that is exactly what ANZ has predicted, with the financial institution stating they expect a whopping 20% price growth for 2021, which will undoubtedly make WA the strongest performing property sector in Australia.
It was fantastic to share this great news with all our attendees and as a result Damian’s optimism.