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Western Australia\u2019s strong property market conditions are expected to continue, with REIWA\u2019s 2022 outlook estimating Perth house prices will rise a further 10 per cent next year.<\/p>\n
Western Australia\u2019s strong property market conditions are expected to continue, with REIWA\u2019s 2022 outlook estimating Perth house prices will rise a further 10 per cent next year.<\/p>\n
REIWA President Damian Collins said the WA property market was firmly in recovery, with the Institute forecasting Perth house prices to increase by 10 per cent in 2022, following approximately 14 per cent price growth in 2021.<\/p>\n
\u201cDespite the strong price growth recorded in 2021, WA is still the most affordable state in the country for housing, with prices in most regions across the state yet to catch up to their 2014-15 peaks,\u201d Mr Collins said.<\/p>\n
Perth sales market<\/strong><\/p>\n Sales activity is strong in Perth, with the average weekly reported sales figure in 2021 sitting at 865 \u2013 up from 680 in 2020.<\/p>\n \u201cAnd since the spring selling season kicked off, weekly reported sales on reiwa.com have routinely been above 1,000 per week, which demonstrates that the demand for housing in Perth is still very strong,\u201d Mr Collins said.<\/p>\n \u201cWe anticipate sales volumes to hold at current healthy levels in 2022, which will put upward pressure on house prices over the next 12 months,\u201d Mr Collins said.<\/p>\n Listings for sale should increase modestly in 2022 as sellers seek to capitalise on strong price growth, however they will remain below historic averages.<\/p>\n “Current listing levels are 11 per cent lower than they were this time last year and almost 50 per cent lower than what they were three years ago,\u201d Mr Collins said.<\/p>\n \u201cThe increase in new listings to market next year should be offset by the resumption of migration once interstate and international borders open. As more people arrive in WA, this will add to the demand for housing and keep listings below historical averages.”<\/p>\n The outlook for 2022 is positive, however interest rate increases loom as a possible deterrent.<\/p>\n \u201cInterest rate rises have the potential to slow the market in 2022. Whilst most people are aware that interest rate rises will occur at some stage, if there are multiple interest rate rises too close together, this could reduce market activity and slow projected growth,\u201d Mr Collins said.<\/p>\n \u201cIt would be unlikely to derail the market entirely though. WA has some of the most affordable housing in the country and one of the strongest economies in the world. We also have very low \u2018for sale\u2019 and \u2018for rent\u2019 stock. All of these factors point to another strong year of growth.\u201d<\/p>\n Perth rental market<\/strong><\/p>\n REIWA anticipates Perth\u2019s rental shortage to improve slightly next year as new constructions are completed and investor activity grows.<\/p>\n \u201cWhilst rental listings are likely to remain lower than historical averages, we do expect to see more available rentals on the market in 2022 than we saw this year,\u201d Mr Collins said.<\/p>\n \u201cWe\u2019ve seen investor finance levels increase in WA during 2021, which should result in more properties being available to rent in 2022. Additionally, as construction projects are completed and people move into their new homes, this will free up some of the rental stock that is currently occupied.\u201d<\/p>\n Median rent prices are estimated to increase between 10 and 15 per cent during 2022, which will attract investors.<\/p>\n \u201cTenant demand will remain high in 2022, which will see rents continue to rise. Despite this, the Perth rental market is still very affordable, with WA tenants enjoying the cheapest rental market conditions in the country,\u201d Mr Collins said.<\/p>\n A significant threat to the WA rental market in 2022 and beyond is the major changes being considered by the WA Government to the Residential Tenancies Act 1987<\/em> (RTA).<\/p>\n \u201cThe outcome of the RTA review could have dire consequences for the state\u2019s rental market if investors\u2019 rights are taken away,\u201d Mr Collins said.<\/p>\n \u201cThe tenancy laws must remain fair for both rental providers and tenants, or we will see investors exit the WA market in large numbers, putting added pressure on the already short rental supply, and causing more harm to tenants in the long-run.\u201d<\/p>\n Regional WA<\/strong><\/p>\n Market conditions across regional WA are expected to remain strong in 2022, with lifestyle predicted to be a key growth driver.<\/p>\n \u201cPort Hedland was the top performing regional centre in 2021 for price growth, largely fuelled by the resurgent mining industry,\u201d Mr Collins said.<\/p>\n \u201cIn 2022 we anticipate lifestyle to be a driving factor behind where people to choose to live, especially if there are local employment opportunities in regional areas.<\/p>\n \u201cWe have some of the most affordable housing in the country, especially in our regional towns. They offer enviable lifestyle opportunities and are likely to attract strong demand from buyers as WA\u2019s population starts to grow again.\u201d<\/p>\n<\/p><\/div>\n