- Demand high for Perth amid slow supply as the borders have now been open for a month
- Leading property commentator, Trent Fleskens, will be addressing these concerns and offering advice in an upcoming free webinar
- Perth, however, continues to remain relatively affordable
West Australian borders have been open for a month now and the investors’ gaze remains firmly fixed on the state’s real estate sector.
Following double-digit price growth – 13% according to CoreLogic – anyone perusing Perth property will be putting up with dwindling supply and sky-high demand.
How can investors capitalise on the border reopening?
While many described 2021 as an “extraordinary year for property”, it is likely the heat is yet to dissipate.
In addition to a very active market that drove house values to new heights, Perth prices are set for a major rebalancing with the national average.
Perth’s median price remains 45.9% below the national average and less than half of Sydney’s ($1,098,412).
With all that in mind, how do you capitalise on a red hot real estate market?
Trent Fleskens, Managing Director of Strategic Property Group will be addressing this burning question and more, in a free webinar co-hosted with Performance Property Advisory.
Mr Fleskens is a Licensed Real Estate Agent, Licensed Settlement Agent, and Qualified Property Investment Advisor, regularly commentates on Channel 9 News, Seven News, The West Australian, 6PR-882 and The Property Tribune, and co-hosts the Perth Property Podcast.
This webinar will delve into the long-term growth trends in the Perth market and tell you how to discern which suburbs will be a growth hotspot in 2022, along with how to expand your portfolio quickly and safely.
With the floodgates now open – and supply lower than in 2019 while demand is higher – it is important not to sit idle but instead take advantage of this opportunity.
Supply tightens amid soaring demand in 2021
Heightened demand in Perth property was driven by several financial factors.
During the pandemic, the spending and saving habits of Australians improved, putting many in a better position to purchase property.
Demand also skyrocketed due to financial incentives including the First Home Owners Grant and the Off-The-Plan Duty Rebate Scheme, giving otherwise hesitant buyers the impetus to purchase.
Put simply, the supply of properties within Western Australia did not match the soaring demand, thereby compounding price increases.
REIWA data revealed that the December quarter listings in 2019 reached 12,394 properties, with time on the market a median of 39 days.
The December quarter for 2021, however, saw listing plunge to just 8,000, with houses selling in just over two weeks (median of 16 days).
While a drop in property listings could sometimes be attributed to lower demand, this was not the case for Perth, last year.
The rental market reacted similarly:
|Vacancy rate||Median rental price (house)|
|March 2020||2.20%||$375 per week|
|December 2021||0.70%||$450 per week|
Tim Lawless of CoreLogic recently told The Property Tribune that despite the monthly pace of growth picking up in recent times, Perth remains one of the softer capital city housing markets for value growth:
“Closed state borders appear to have had a significant impact on housing demand, especially interstate migration rates,” he said.
He added, there was a range of reasons behind Perth’s relative affordability.
“Low mortgage rates, a healthy level of housing affordability following the long running downturn, low advertised stock levels and a turn to positive sentiment are also factors that have supported the Perth market.”
Tim Lawless, CoreLogic
To secure your free webinar seat, register here.