- Affordability in Perth is a main driver for its attractiveness, according to Peter Gavalas.
- Stock on market is scarce, with advertised properties dropping by over 7% in 2022.
- Renters are doing it tough with 0.3% vacancy rates and rents increasing by over 10%
Perth’s popularity as the place to buy a home and settle down in 2022 might be a double-edged sword, with one buyer’s agent warning the mass migration into the West is putting pressure on the local property and rental market.
High growth levels driven by affordability
Western Australia (up 1.3 per cent) was second behind Queensland (up 2.0%) for population growth in the 2021-2022 financial year, according to Australian Bureau of Statistics (ABS) data. ABS data noted the 2021 census counted 2.7 million people in WA, up from 2.5 million in 2016, with four out of five living in Greater Perth.
Perth-based buyer’s agent Peter Gavalas, from Resolve Property Solutions, said housing affordability was the key issue driving many Australians west.
“Perth’s property market was one of only three capital cities to see positive growth over the 2022 calendar year, with CoreLogic’s home value index up by 3.6 per cent. Yet the city remains accessible to many first home buyers, with a median home value of $561,000 in December – about $450,000 less than Sydney,” he said.
“Perth might be one of Australia’s most affordable capital cities, but workers in the city earn the highest median weekly salary of all the state capitals at $1,305 per week, according to ABS data.”
Peter Gavalas, Resolve Property Solutions
“You’re paying less on your home loan while earning a great wage, so you should have plenty left over to make the most of every lifestyle opportunity available – whether that’s enjoying the city’s thriving restaurant and entertainment scene or the state’s many natural wonders,” Mr Gavalas said.
Population boom driving stock down
Mr Gavalas said Perth’s population boom was also starting to impact the property market, with the total number of properties advertised for sale dropping by 7.4 per cent over 2022, according to SQM Research.
“I’m not surprised that Perth was only one of two capital cities to see a fall in total listing volumes over the year. Properties are being snapped up quickly by both investors and relocators, particularly in the more affordable price brackets,” Mr Gavalas said.
“It’s likely these strong conditions will continue, with Perth values forecast to rise up to 5% this calendar year, driven by interstate migration.”
Rental scarcity drives prices up
Domain figures for November, as released in December 2022, showed Perth vacancy rates were at record lows of 0.3 per cent. While rates held steady compared to October figures, that’s a 0.2 percentage point drop from 0.5 per cent in November 2021.
Perth Vacancy Rates
The shortage of available rental properties is putting upward pressure on rents, with the median weekly asking house rent soaring by 11.3 per cent over 2022, according to CoreLogic. Similarly, unit rents have grown by 10.4 per cent.
Perth Asking Rents
