Despite the global pandemic, 2021 proved to be a significant year for the Australian property market, with demand often greater than the supply, driving prices to record-setting heights. Perth was no exception to this trend, showing vigorous sales activity, with the average weekly reported sales figure in 2021 around 865 – up from 680 in 2020.
Perth residential sales are still showing strong growth
According to reiwa.com, Perth house sales and median price saw figures last recorded in December 2016, with the bulk of growth seen trending upwards from June 2020. These figures demonstrate demand for housing in Perth is still robust, with more people returning to our state and seeking residential properties. While this growth has stabilised slightly over the holiday period, the lack of supply means demand remains high, and we predict sales prices to remain elevated throughout the first quarter of 2022.
For sellers, the Perth real estate market was strengthened by several factors, including low interest rates, the high number of expatriates returning to Australia, and increased savings due to travel bans and lockdowns. These factors contribute to great competition among buyers, with many properties selling before they hit the open market.
What about the Perth rental market?
Supply was a considerable concern during early 2021, with rental properties showing significant rent increases from Jun 2020 to June 2021. Potential tenants were offering over and above the advertised rental rate to secure a property, a trend we predict will continue well into 2022’s first quarter. However, REIWA anticipates Perth’s rental shortage will improve slightly next year as builders complete new constructions and investor activity grows.
Should I invest in property in this hot market?
We estimated that median rent prices could increase by as much as between 10 and 15 percent during 2022, which will attract investors if you can buy. View our latest listings for a prospective Perth real estate investment property, or speak to one of our experienced real estate agents for expert advice.
It’s worth remembering that the WA Government is currently considering significant changes to the Residential Tenancies Act 1987 (RTA), which could be a potential threat to the WA rental market in 2022. Talk to one of our property managers for more information.
What’s happening in regional WA?
The impact of COVID on WA’s regional property market is noticeable, as more people opted for lifestyle changes, choosing 2021 to make a sea or tree change. We predict conditions across regional WA will remain strong in 2022 as people seek to make positive changes to their lifestyles.
Perth House Price Forecast
While it appears Perth’s housing market has temporarily stabilised after a run of growth, we anticipate it will pick up again in the new year. Once state borders re-open in February, it’s likely growth will rebound as demand from interstate migration resumes.
Why choose ACTON as your Real Estate agent in Perth?
ACTON Real Estate has offices strategically located around the Swan River, western suburbs, and up and down our wonderful coastline from Mandurah to Mindarie. Known and respected as one of Perth’s premier real estate agencies, we can help you find your perfect luxury residential property.