Things are looking up for Perth’s property market, and our State’s population growth will be the driving factor.
Commenting on the latest ABS Demographic statistics, which were released this month, Peard Group CEO, Peter Peard said the figures indicated some positive news for the Western Australian property market.
“The September 2017 quarter figures showed that the rate of population growth for WA was 0.9%, suggesting it was now in a recovery mode, with the State recording a higher population growth rate than South Australia, Tasmania and the Northern Territory.
“These figures show there has been an improvement in net overseas migration to Western Australia with this number doubling during the September 2017 quarter to 4,441 compared to 2,022 for the June 2017 quarter.
“At the same time, the rate of inter-state migration out of WA is showing signs of decline with net inter-state migration declining from minus 2,767 to 2,289 persons during the same six month period.
“The huge exodus of people out of our state following the downturn in the resources sector combined with low rates of overseas migration had a negative impact on Perth’s property market over the past three years.
However, there are signs that the State economy is now improving, and this will give a further boost to population growth.
Online job advertising is increasing at its fastest growth rate in more than two years in WA, with latest figures showing a 14.8% growth in job advertisements over the past year.
“These improving economic conditions should encourage more people to come to WA especially as we now have highly affordable housing compared to the Eastern States.
“Population growth is the last piece in the jigsaw that will see an upswing in the local property market during 2018/2019.
“The major oversupply of housing caused by resources building boom has now come to an end and this is reflected in a much tighter rental market with Peard now recording rental vacancy rates of around 3.5%.
Historically, the rental market is a forward indicator of the overall property market as it signposts future housing demand.
“If WA’s population growth gains further momentum during the coming year, then the recovery in the property market may come much faster than many experts are predicting,” said Mr Peard.