om conditions return
Perth’s property market is set to experience conditions not seen since the mining boom, according to a range of professional forecasts.
ANZ economists expect Perth property to outperform all Australian capital cities in 2021.
They forecast Perth housing prices will jump as much as 12%, adding $47,500 to the median house price and $37,000 to the median unit price.
Factors driving the boom
Factors driving the anticipated price rise across the nation include historically low-interest rates, high levels of government stimulus, the reopening of domestic borders and improved economic activity as community transmission of COVID-19 is, hopefully, brought under control.
Specific factors driving Perth’s rise include the strong performance of the mining sector and a shortage of housing stock.
According to data from the Real Estate Institute of Western Australia (REIWA), December 2020 saw a jump of 42.5 per cent in house sales compared to December 2019.
REIWA president Damian Collins reported reduced travel during December had allowed people to benefit from the favourable real estate market. Traditionally, December experiences a reduction in the number of house sales due to buyers going away for the festive period. Yet this year, Perth experienced a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions whilst they are unable to travel.
Perth’s average house price remained stable in December, sitting at $480,000, while REIWA data showed 45 per cent of suburbs saw an increase in property value during the month.
Perth’s market is shaping into an Investor’s dream
Perth remains very favourable for investors, with REIWA expecting Perth’s median house price to rise between 6 and 10 per cent during 2021.
Perth rents set to continue increasing
REIWA warned in October that Perth was in a ‘rental crisis’, as vacancies reached their lowest level in 13 years, falling below 1% for only the third time in 40 years.
REIWA president Damian Collins said it was pleasing to see the rental market pick up in a time when activity traditionally slowed down.