As conditions continue to heat up in Perth, our property experts highlight some of the leading trends from October 2021.
Trend 1 – Perth price growth remains widespread
Our buyer’s agency team continues to report highly competitive conditions across Perth’s property market, with historically low sales stock and sustained buyer interest continuing to place upwards pressure on property prices in investment-grade suburbs. Contrary to other major markets, where price growth is predominantly being seen in upper price segments, REIWA’s suburb-level data shows that annual growth is widespread across most price points of Perth’s market. With high-quality properties continuing to attract multiple offers from buyers, our team are working closely with our clients to navigate property negotiations through competitive terms, while providing access to a broader range of investment options through off-market listings and existing agent networks.
Trend 2 – Market offering second highest rental yield across the nation
Perth continues to outperform the combined capital city average for annual change in rents, with rental prices up 14.5% annually in Q3 2021 according to CoreLogic’s Residential Rental Review report. Despite significant rental growth over the past year, the market’s relative affordability comparative to the Sydney and Melbourne markets means Perth continues to offer some of the highest rental yields across the nation. Gross yields sat at 4.4% in October 2021 – the second highest of all states and territories behind Darwin.
Trend 3 – Strong economic backdrop supporting Perth’s longer-term outlook
While continued low levels of stock continue to drive competitive conditions in the immediate-term, strong economic tailwinds remain in place to support the longer-term performance of Perth’s property market. In their Q3 State of the States report, Commsec revealed that Western Australia ranked first on relative economic growth, with economic activity sitting +30.9% above its decade average level of output. With business investment at its highest level since 2016 and household consumption on the rise, this will continue to have positive flow-on effects for Perth’s property market.
Trend 4 – Re-opening of borders set to bring more demand
WA continues to experience a shortage of skilled workers, with the latest data from the Australian Bureau of Statistics showing that the state’s unemployment rate has fallen to an eight-year low of 4.1%, while 52,100 job vacancies were recorded in August 2021. These figures set the foundations for further growth when borders re-open as more skilled tradespeople move to WA to fill these roles, bringing with them an influx of demand for housing and rentals.