Why now is the perfect time to buy in the Perth.
1. RISING PRICES:
Westpac has projected an
annual price growth of 8% in the Perth property market in 2024.
2. PERTH MARKET:
Perth is in a rising market for both units and houses in comparison to the other states which have reached their peak, are in decline, or stagnant. In early September, the
median house price in Perth was $785,250 which was just over half of Sydney’s median house price of $1,180,463.
3. LOW SUPPLY:
Based on the last few years of challenges facing the construction industry, there has been a
very low supply of houses and apartments (record lows). Demand is out stripping supply considerably with an estimated 7-10 year catch up period needed.
In early September, there was 3,755 properties for sale in Perth, which is
26.1% lower than levels seen a year ago. The graph below illustrates the decline in listings from current levels since March 2019 by a factor of more than four.
Image source: reiwa.com.au (September, 2024)
4. HIGH DEMAND:
The Perth property market is currently sitting at a median, all-time record low, of just
8 days to sell a property as reported by REIWA in early September. Not all that long ago that figure was about 60 days, this shows the public’s appetite for Perth property is extremely strong.
There is a very high demand for any property because of many reasons, including increased immigration, low supply, and from a national standpoint, more affordable.
There is
over 1000 people a week entering WA (52,000+ a year increase in population). Demand is expected to continue with WA recording a 2.3% population increase over the year to December 2022 and is forecasted to grow another 1.8% in 2024.
5. RENTAL VACANCY:
The rental vacancy rate is
currently below 1%, where it would
normally be around 5%, pointing to a rapid tightening of the rental market. This is providing strong returns for investors, with the potential for strong capital growth.
Demand will maintain pressure on prices, and we will see median rents increase over the remainder of the year as 12-month fixed-term leases come up for renewal at current prices.
6. THE NEXT STEPS:
With interest rates leveling out and reductions forecasted in 2024, there is an opportunity in Perth’s off-the-plan market right now for any strategic purchaser that wants to maximise the coming growth cycle.
By all accounts, now is the time to step up to the plate.
Contact us today using the button link below to capitalise on this unique time in the market.
Stay tuned as we’ll return next month with another update on the Perth Housing Market.
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Statistic information has been sourced by REIWA, REA, CoreLogic and valid as at September 2024.
