Perth tipped to be a hotbed of property investor activity in 2022, with double-digit growth forecast
Perth’s property market looks set for a year of double-digit price growth, an even tighter rental market, and the return of investors in 2022, experts say.
And most industry players agreed the biggest factor that will impact the residential market will be the planned opening of Western Australia’s borders in February.
“I think the fact that the Western Australia’s border has been tighter than other Australian borders is likely to be having an impact at the moment,” PropTrack economist Anne Flaherty said.
“And what I would anticipate is once it does open in 2022, we are probably going to see a little bit of an uptick in activity in the property market. Now, that’s going to come from those people who are looking to sell, and also people who are likely looking to buy.
“One thing we saw in Victoria and New South Wales was that following the easing of border restrictions, there was a big uptick in the number of people who were willing to put the properties up for sale on the market and I would expect to see not as dramatic a trend in WA, because it’s a bit further away, but a similar trend.”
Realmark Coastal managing director Sean Hughes said WA’s strong economy was likely to be a major drawcard for people choosing to live and buy in Perth.
“I have never seen as much international and eastern states enquiry as what I am getting at the moment – and have been getting over the last six months,” Mr Hughes said.
“I think that’s only the tip of the iceberg. I think with borders opening in February, why wouldn’t you want to come to Australia? Why wouldn’t you want to come to WA?
“It is so compelling and we have the most affordable real estate.
“I think what I am starting to see trickle through at the moment is the investors starting to come back from [the] east coast where they are going: ‘I want my portfolio diversified. I want some of WA. I can see it’s going to be the next growth phase.’”
Property experts are tipping a good 2022 for the Perth market. Picture: Getty Images
WA could see some 20,000 people relocate to the state for employment opportunities in 2022, property analyst and valuer Gavin Hegney said there were not enough properties to cope with the influx.
“At the moment though we have less than 2000 properties available for rent and less than 10,000 properties that can be bought, meaning that we can only really handle an influx of 8000 people before our market is tight as a drum,” Mr Hegney said.
The planned reopening of the WA border at long last will drive a flurry of activity. Picture: Getty Images
Real Estate Institute of WA president Damian Collins said a housing shortage remains in Perth with not much stock and the rental market facing a new 40-year low vacancy rate.
“The fact that builders are struggling to produce new housing due to the labour shortage in that space, it means not as much stock is going to be built as urgently needed,” Mr Collins said.
The institute has predicted median rent prices will increase between 10 and 15 per cent in 2022.
“Tenant demand will remain high in 2022, which will see rents continue to rise. Despite this, the Perth rental market is still very affordable, with WA tenants enjoying the cheapest rental market conditions in the country,” he said.
As well as investors, Perth’s lifestyle and relative market affordability could draw new residents too. Picture: Getty Images
Ms Flaherty said median house prices will continue to rise next year but not at the same level seen during 2021.
“The drop in interest rates really led to a big jump in property prices but we think that most of the impact of lower rates has now been accounted for in price growth, so it’s really just going to be that demand piece that supports price growth over the next year,” she said.
Mr Collins expects to see double-digit median house price growth in 2022.
“We are the cheapest of any of the states to buy property. So given how affordable we are, we have some capacity in the system to absorb price increases,” he said.
“The strong demand, the strong economy, the limited supply, all of that points to – barring anything outside of the ordinary and the economy remains strong – to pretty decent price growth of 10 per cent next year.”
Source – realestate.com.au – 17/12/2021
