As reported in the West Australian, a recent survey conducted by research firm SEC Newgate Research shows one in 10 Australians are considering moving to WA, with most enticed by the great weather and job opportunities.
Other hot buttons included our world class beaches, lifestyle and affordable property prices.
On top of this, data was released recently on population growth from 2021, showing WA more than doubled the Australian average growth rate of 0.5% with 1.1% growth – sitting just behind Queensland in second position nationally. The Albanese government is also prioritising the processing of almost 60,000 permanent visa applications to assist with our dire skills shortages.
What does this mean when combined with current and projected property stock levels in Perth?
Well, stock levels have been consistently low for some time now, currently sitting just above 8,500 properties for sale. For reference, a balanced market would have 12,000 – 13,000 properties available for sale. Add to this the fact that new dwellings are not materialising, due to delays, cost increases and risks in the construction industry.
Nationally, the number of new dwelling starts dropped by 6.5 per cent in the March quarter, declining for the third consecutive quarter in a row. Western Australia recorded the most significant quarterly decline in the country at 32.2 per cent; the state’s largest drop in more than 37 years.
Let that sink in for a moment…
Despite the recent election and three months in a row of aggressive interest rate hikes, the Perth market continues to surge – growing another 2.2% in the June quarter alone, while still maintaining the title of lowest capital city house prices in Australia, according to CoreLogic data.
At the same time, an historically low rental vacancy rate is pushing rents higher and higher, offering a rare combination of growth and yield to savvy investors.
Article by Matthew Hughes of Capital Property Advisory