Norup + Wilson was delighted to host REIWA President Damian Collins at a recent sundowner discussing the future of Perth’s property market.
The presentation highlighted a number of pluses for Perth, especially in light of the mining sector and how this is once again driving up State final demand (refer figure 1).
Damian advised that he had met with the Reserve Bank in the last week and they certainly expressed a positive outlook for WA, predicting 4% growth over the next couple of years. While this is lower than the boom times of 2012, which was faster than China even, it is far more sustainable.
Population growth – which is also a significant driver for housing demand – has also begun to show an upward swing and is anticipated to continue to grow with over 8000 construction jobs in the North West now coming into play (refer figure 2).
But the biggest sign that our property sector is in recovery is the rental vacancy rate which has dropped from 7.3% in June 2017 to 2.8% by the December 2018 quarter (refer figure 3). This vacancy rate, coupled with the lowest level of building rates in over a decade, will certainly mean that shortly housing supply will exceed demand and this will ultimately drive up property prices and demand.
Furthermore 23% of Perth’s suburbs are already showing up to 5% median price growth in the past 12 months, including Mt Pleasant at 21% and Burswood at a staggering 28%. These signs are all demonstrating that 2019 and beyond represent good times for WA and this is further backed by investor sentiment which shows that their favourite hot spots for investing are WA and Brisbane.
If you have been waiting for a sign that the Perth property market is back into growth phase – this is it! And if you would like to buy an iconic apartment in an iconic location (which helps with resale values) then call into the Norup + Wilson team today. Because we are known after all, for being the company where anything is possible!