2021 A Year In Review
It seems that 2021 has been the year of media overload. From the pandemic to politics to the Perth property market, there has been a constant barrage of information. At times like these, it can be overwhelming and much easier to switch off. However, to invest wisely, you need to keep your finger on the pulse. Luckily, we are her to help! So, here is a snapshot of what happened in the Perth property market in 2021 and what is being predicted as we move forward into 2022 …
- Property Values – according to the ABC and Core Logic https://www.abc.net.au/news/2021-10-01/perth-home-values-surge-18-per-cent-in-2020-2021/100508528 Perth experienced a surge in values of more than 18% in the past year overall, with a 15% surge for units
- Stock on Market – sales and rental data for units as per Reiwa on the 14/11/21 https://reiwa.com.au/the-wa-market/perth-metro/ shows a significant reduction of properties available on the market as compared to a year ago; with increases in both sales activity and median price
- Housing Affordability – Domain.com.au https://www.domain.com.au/research/house-price-report/september-2021/#perth shows that Perth remains the most affordable capital city in Australia as of September 2021
- Interest Rates – The Cash Rate as set by the RBA dropped to a record low of 0.1% https://www.rba.gov.au/media-releases/2021/mr-21-24.html with banks actively pursuing investment loans
- Rental Vacancy Rates- rates were down to 0.9% in the Perth Metro area https://reiwa.com.au/the-wa-market/rental-vacancy-rates/, one of the lowest vacancy rates on record
Moving into 2022 …
- Westpac’s chief economist predicts ongoing growth on 2022 (though at a lower rate) with a possible correction coming into 2023 https://www.9news.com.au/national/australia-property-prices-forecast-to-dip-5-per-cent-in-2023-after-rate-rise/d7552708-085c-41e4-9566-dcd8dd598847
- Your Investment Property https://www.yourinvestmentpropertymag.com.au/news/strong-activity-predicted-for-perth-273236.aspx predicts an increase in prices due to low stock levels and continued rising prices.
- Momentum Wealth predicts strong growth due to Perth’s affordability https://momentumwealth.com.au/articles/where-next-for-perths-property-market-expert-predictions/
Well, it looks like everyone agrees that prices will keep rising throughout 2022 and Perth has a long way to catch up with all other States. Considering Perth has one of the lowest rental vacancy rates and among the highest rental yields in the country along with rising land and construction prices, 2022 is poised to show significant growth. Additionally, when the borders open up, there is likely to be an influx of immigration into Perth due to its low unemployment rate and housing affordability; which is likely to add fuel to the fire as there will not be enough stock on the market to keep up with demand. It isn’t very often that you get times of higher than normal inflation, coupled with low interest rates, low stock levels and continued levels of demand. Times like this have proven to be times of significant growth, so watch out for where prices are headed in Perth in 2022.