Following several challenging years for Perth’s property market, the western Australian capital is now widely considered to have entered its upswing phase, with tightening stock levels and rebounding buyer confidence continuing to support sustained growth across the city’s sales and rental sector. But, how is the market projected to perform over the coming years? Here’s what a number of industry experts are predicting…
QBE Insurance have revealed a strong outlook for Perth’s residential property sector in their latest outlook report.
Following strong gains posted in the year to June 2021, they’re now predicting a further 18.8% growth in median house prices over the next three years to 2024, fuelled by WA’s strengthening economy, rising activity across the mining sector and the relative affordability of property prices in the western capital.
QBE are predicting a softer outlook for Sydney, with affordability pressures resulting in forecast growth of just 9.0% across the same three-year period.
Terry Ryder, Property Researcher
Experienced property researcher and commentator, Terry Ryder, has predicted strong performance from the Perth market in the coming years.
“The Perth market has shown greater resistance to the pandemic than most Australian markets in terms of sales activity,” Mr Ryder said.
Mr Ryder says the Perth market has been buoyed by relative freedom from COVID-19 restrictions, increasing first-home buyer activity thanks to government support, and near record low vacancy rates causing upwards pressure on rental prices.
Mr Ryder’s comments were echoed by renowned demographer, Bernard Salt, who believes “Perth is the right place for the moment” and predicts a property boom will persist through “the first half of the 2020s”.
The Real Estate Institute of Western Australia
After forecasting growth of 15% for the Perth market in 2020-2021, the Institute is predicting another year of double-digit growth for the residential sector in 2022.
They say this continued rise will be fuelled by WA’s strong mining sector, low unemployment rate, and the low cost of money which is further emphasizing WA’s relative affordability comparative to other states.
Jason Murphy, Economist
Economist Jason Murphy is another leading figure who believes the Perth property market is set to thrive thanks to a mix of factors including the state’s response to the COVID-19 pandemic, an increase in mining activity and the overall liveability of the city.
Mr Murphy also touched on the affordability of the Perth market, which he said offers prospective buyers much greater value for their money compared with the Sydney and Melbourne markets.
“The downside risk of a Perth house purchase has to be quite low, and that has to be attractive in our current era where nobody is sure what will happen next”, Mr Murphy said.
With leading market indicators continuing to favour the western capital, Perth’s property market looks well poised for strong gains over the coming years. The State’s strengthening economy, low stock levels, and rebounding buyer confidence all signal positive change for the local market, with many areas already experiencing these improvements. Combined with WA’s relative affordability, these conditions are bringing unique opportunities for local and interstate buyers in a position to invest.