WA’s property market is expected to experience steady growth in 2021 in both rental and sales markets, according to the Real Estate Institute of WA.
REIWA 2021 Outlook figures released today indicate Perth rents are forecast to increase 10-15 per cent next year and house prices 6-10 per cent because of strong demand, record low interest rates and the return of confidence to the real estate sector.
REIWA President Damian Collins said 2020 had been an unusual year for property, but despite the lull experienced during the start of the COVID-19 pandemic WA was showing extremely positive signs.
“Sales activity in Perth at the start of the year was sitting at approximately 2900 transactions per month followed by an uptick where we are now seeing nearly 4200 transactions,” Mr Collins said “Listings for sale have reached a 13-year low with just over 10,000 listings for sale on reiwa.com putting upwards pressure on prices.”
Jones and Co Director Kelly Jones said the strong conditions being experienced in many areas had not been seen in Perth since 2013.
Kelly said her team was frequently reporting multiple offers for properties and often the offer was considerably more than the advertised price.
“We are preparing for the market to become even more competitive at the start of 2021 due to a further increase in the number of people returning from interstate and overseas,” she said. “Population growth is continuing and with more than 1000 international arrivals expected every week, plus the domestic borders opening, the rental market could get even more competitive at the start of next year.”
Kelly said there was also strong interest in properties that offered more space, in particular from first-home buyers who wanted to live a short commute from the CBD, making suburbs like Maylands, Bayswater and Bassendean among the most desirable.
And Mr Collins said record low interest rates meant it was cheaper to buy than rent.
According to REIWA, rents in WA have risen 8.5 per cent over the past three months, pushing the median rent from $350 to $380 per week.
“This is one of the reasons why we can expect sales activity in 2021 to continue gaining momentum,” he said. “If you can afford to buy, you will be a lot financially better off and having lower mortgage payments than your rent payments will be.
“In 2020, Perth was the lowest median house value of any capital city in Australia and with the increase in population growth due to people returning to WA from overseas and interstate, this could change in 2021.”
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