As the year draws to a close, our property investment experts analyse some of the leading trends influencing Perth’s residential market in the final months of 2021.
Trend 1 – Investors making their return
While the market’s recovery has been predominantly owner-occupier driven to date, recent figures from the Australian Bureau of Statistics are revealing early signs of a rise in investor activity across WA. Figures released for the month of October showed that new loan commitments to investors increased from $540 million to $583 million on a month-to-month basis (+8.05%), while the percentage of investors in the market rose from 21% to 23.4% across the same period. Our own internal enquiry levels at Momentum Wealth have revealed a 108% increase in interstate enquiry in the first quarter of FY22 compared to FY21 – no doubt driven by the market’s comparative affordability, strong rental performance, and continued growth prospects.
Trend 2 – REIWA predicting 10% price growth in 2022
Following 14% price growth across 2021 (CoreLogic), the Real Estate Institute of Western Australia has revealed their outlook for Perth’s property market in 2022, predicting a further 10% price growth across the year. The Institute says property values in most regions remain below their 2014/15 peaks, with Perth’s continued affordability, strong sales activity, and continued buyer and tenant demand set to support further improvements in the year ahead.
Trend 3 – Buyer activity ramps up in November
Buyer activity in Perth remains strong heading towards the Christmas season, with over 1,000 property transactions recorded across November – a rise of over 9.0% compared to the month prior, and 16.6% higher than the same period last year. Our buyer’s agents continue to report competitive conditions during home opens, with 5+ offers on properties not uncommon. We are working closely with clients to position them as strongly as possible during property negotiations through competitive clauses, while expanding their investment options where possible through off-market opportunities.
Trend 4 – Premium suburbs continue to lead apartment sales
Perth has continued to experience strong levels of apartment sales, with 314 transactions reported in Q3 of 2021 according to Urbis Apartment Essentials. Owner-occupiers remain the key driver of this rise in activity, accounting for 71% of sales from the quarter. The highest proportion of sales were recorded across Perth’s premium suburbs, led by the city-fringe south precinct (South Perth/Como) where apartments sold at a weighted average sale price of $1.074 million. This trend is underpinned by continued demand from downsizer demographics for boutique product across Perth’s premium markets.
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