Many people were glad to see the back end of 2020 after the impact of COVID-19 threw plans for people all over the world into chaos. However according to property experts, 2020 was one of the best years in the property market we have seen for a long time and 2021 is shaping up to be a year of opportunity for West Australians, particularly those in the housing market.
According to the Real Estate Institute of WA and others, Perth housing sales have surged to their highest level since the city's last property boom seven years ago, partly due to a tightening of supply and buyers flocking to the COVID-19 "safe haven" of Western Australia.”
URBIS Director David Cresp says right now in WA we are seeing record low interest rates resulting in improved borrowing capacity. He says together with new government incentives and an increased rate of population growth, there is greater confidence in the property market.
“Consumer confidence has rebounded to levels we haven’t seen since 2013 and compared to other states WA continues to have a good level of affordability, with our economy doing very well.
LWP’s Managing Director Brendan Acott says last year saw a lot of activity in the first home buyer market, with many people coming back from interstate and overseas.
“People are not leaving Perth and after years of interstate migration to other states, it’s now the other way. Mining companies are running FIFO out of Perth and our population is growing, combine that with one of the highest wage rates in the country and the cheapest housing prices and WA is clearly the place to be.”
David Cresp added that our state is also experiencing extremely low rental vacancy rates, at just 0.8 per cent. Urban Development Institute of Australia (WA) Chief Executive Officer Tanya Steinbeck says those figures indicate WA is seeing the beginnings of a rental crisis.
“The rental shortage has been exacerbated by the COVID moratorium which has meant less investors entering the market. Given investors contribute significantly to rental stock this is a real issue we hope will be somewhat alleviated when the moratorium lifts in March.”
However, she says there is good news, and believes 2021 will see continued activity in the established market and the new build sector.
“While I anticipate that demand for land and new builds will moderate considerably compared with 2020 when the stimulus measures sparked unprecedented demand, what we are likely to see is a consistent flow of buyers looking to enter the market and expect demand to remain above pre-pandemic levels.”
The UDIA says for buyers who are in stable employment and/ or a good financial position now is an excellent time to make the most of record low interest rates and accommodative lending conditions.
Those in the industry say Perth remains one of the most affordable cities in the country and at this point in time it is also one of the safest places in the world. All these positive attributes add up to the current market looking very promising for those seeking to make the most of the opportunities on offer, with conditions right now resulting in it being a great time to buy!