Given the Covid-19 pandemic happening all over the world, many industries worldwide have been suffering economic impacts. While Australia also felt these impacts, the Perth property market seems to be recovering faster than ever.
Western Australia’s well-controlled handling of the pandemic is resulting in more stable growth and faster recovery period compared to Eastern Australia. Perth is also less reliant on affected industries such as tourism and international students. They were less vulnerable to the economic blows that other cities in Australia faced. Western Australia is fortunate to have a huge continuous income from the mining industry.
Here are some forecasts to watch out for on the real estate market industry in Perth:
Perth house prices predicted to rise to 12% in 2021
It has been reported that east coasters are starting to discover West Australia as they take advantage of government incentives such as the $20,000 Building Bonus grant. Plus the opportunities offering to obtain well priced established real estate.
With a more than the expected demand from applicants taking up the State Government’s $20,000 building grant, the Perth property market is experiencing a higher demand for vacant land. Perth house prices are forecasted by several of the major banks to rise by 12% in the last half of 2021, and by 18% in 2022. This will increase Perth’s median house prices to at least $532,000.
Sales increased by 56% in October 2020
In October last year, metropolitan Perth reported 603 sales but this October 2020, it significantly increased to 946 sales. This is a 56% jump from the previous year. Sales have rapidly increased due to fewer listings for this year. From 14,000 listings last year, it decreased to 10,000 listings. Since there is less supply entering the market, the competition becomes tighter. Contracts are being closed faster compared to the addition of new listings in the market. Hence, pushing up the value of the properties.
Western Australia Border Open on December 08, 2020
More people will now be returning back to Western Australia and will be looking for somewhere to live, as the borders open to allow Victorians and New South Wales people back into the State without quarantine restrictions. While this will only last while those States remain free from the virus, there are many already taking advantage of the freedom of moving to West Australia.
COVID-19 pushed professionals to prioritize savings and investments
According to Westpac’s consumer sentiments, WA now leads the measure of “time to buy a dwelling” throughout the whole nation. After two years of slow downturn, home financing levels are finally recovering. With the pandemic and the fear related to financial security, professionals prioritized saving more with an average of almost 20% of wage savings. Before the pandemic, people usually save only 3% and spend the rest of their salary.
Although there is news that the anti-COVID19 vaccine will be available soon, people do not plan to go out and spend their extra savings just yet. It seems that they prefer to spend extra savings on housing-related expenses. The number of real estate transactions now is already above the level during the pre-pandemic period.
The Perth property market is in the early stages of a market boom
While most countries are struggling with the effects of the pandemic, West Australia is recovering fast – including the real estate industry. Given all these forecasts, Perth is once again on the journey of having a real estate boom after over a decade.
Now is the time to invest in selected real estate in the Perth suburbs. With interest rates for borrowing at an all-time low and the real estate market showing strong signs of recovery, what better time to engage an experienced buyer’s agent to stand alongside you through the journey of selection, negotiation, due diligence, building reports, and a host of unknowns to most buyers.
Learn more about the status of real estate and properties in Perth. Get a free consultation from us today.