Perth Property Market
Perth property market remains very favourable for buyers and investors, however with REIWA expecting Perth’s median price to grow between six and 10 per cent in the 2021 calendar year, investors who are thinking about purchasing their first home, trading up or investing, should act soon before prices inevitably rise.
Perth’s property market is on the rise as reduced travel increases buyer activity, with expectations the median house price could grow by as much as 10 per cent during 2021.
Investors are having a look and realising it’s a cheap price to buy out, the interest rates are low, and there is every chance they’re going to get a tenant willing to pay a higher rent. Investors were reluctant to enter the declining market in the past five years. But we now have a rising market, we have full occupancy and investors will start to come back and create more stock for tenants, rental stock levels continue to remain low, we can expect rents to continue increasing, however we need to remember that rents are still a lot cheaper than they were 15 years ago.
In the short term, a rise in property prices is expected to place further pressure on Perth’s rental market.
REIWA warned 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.
Reduced investor activity has exacerbated the shortage of rental properties. While investors usually account for 30% of home purchases, that has fallen to 17% in recent months.
REIWA President Damian Collins said Perth rents could rise a further 10-15% in 2021, particularly as travel restrictions ease.
Perth Property Market Overview 2021
Perth’s housing market is set to boom in 2021, with economists forecasting growth of up to 12%. This could be good news for the city’s tight rental market, freeing up more stock and easing pressure on rising rent prices.
Perth’s property market will 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.
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.
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