As the first quarter of 2022 draws to a close, our team analyse the biggest trends impacting Perth’s residential property market:
Trend 1 – Perth market growth ramps up in March
CoreLogic’s Home Value Index revealed a strengthening in Perth growth’s trajectory in March, with Perth dwelling values rising 1.0% across the month. This comes as weekly reported sales hit a 12-year high according to figures from the Real Estate Institute of Western Australia, with an average of 1,078 transactions recorded per week throughout the month. As stock levels remain well-below a balanced market, our buyer’s agents continue to witness strong competition for investment-grade properties. They are working closely to provide our clients with a competitive advantage during search and negotiations, including through strategic clauses and off-market opportunities.
Trend 2 – Lending figures reveal the return of WA investors
Data from the Australian Bureau of Statistics has shown that $5.62 billion in home loans was issued to WA investors in the year to November 2021 – almost double that of the previous corresponding period. Looking forward, we expect continued activity from this segment as strong rental yields, a positive economic outlook and projected population growth continue to create an attractive environment for investment purchases.
Trend 3 – REIWA calls for stamp duty reform amid supply pressures
The Real Estate Institute of Western Australia has reinforced its calls for stamp duty reform in WA amid growing supply pressures. Amongst their proposals, the Institute is advocating for a one-off residential stamp duty concession for WA residents aged 65+. REIWA President and Momentum Wealth’s Managing Director, Damian Collins, said the reform “would ease the burden of these upfront costs and help people aged over 65 right-size into more suitable accommodation. This would free up housing stock and assist with mobility across the entire market.” The Institute is also calling for the permanent fixture of the Off-the-Plan Duty Rebate Scheme currently applicable to off-the-plan apartment purchases in WA. As it stands, the Scheme is due to expire in October 2023 following an initial two-year extension.
Trend 4 – Brisbane & Perth record biggest internal population gains
The Australian Bureau of Statistics recently released its latest population growth figures, reflecting movements across the 2020-21 financial year. While the data confirmed a shift towards living in regional areas during the COVID-19 pandemic, figures also revealed some significant changes across Australia’s capital cities. While Melbourne recorded the largest population loss in the 12 months to 30 June 2021 at circa -60,000 people, Brisbane and Perth both recorded increases at 22,000 and 16,000 respectively. Looking ahead, the resumption of international travel will support stronger population growth in the cities, further adding to housing and rental demand.