By Damian Will, Sales & Marketing Manager
While it might seem like a lifetime ago now, the New Year did bring with it the green shoots of positive price growth for Perth’s housing market. Confidence returned and buyers took advantage of historically low interest rates.
And while the post COVID-19 outlook now seems bleak, according to a recent report from JLL, the inevitable downturn is likely to be short-lived and WA is positioned to recover relatively quickly when we emerge on the other side.
It will come as no surprise that the recovery will be led by the resources sector, as it satisfies increases in global commodity demand as infrastructure building activities are used to pull economies out of recession.
The opportunity for the Perth housing market exists in having more FIFO workers living in Western Australia, backed by incentives offered by the State Government.
WA Premier, Mark McGowan, who was speaking in Mandurah last week said, “My Government will now examine opportunities to incentivise these people to remain in Western Australia - this is a huge opportunity. Each and every week there are thousands of FIFO workers who fly out of Melbourne, Sydney and Brisbane into Perth then on to mine sites around Western Australia. It’s a huge opportunity to get those people to come and live here with their families permanently and keep their incomes right here in WA.”
This was supported by Housing Industry Association Executive Director, Cath Hart, who took to Linkedin saying, “The silver lining of COVID-19 and its economic wreckage is this unique opportunity to reconnect WA’s domestic economy and labour market with the extraction and export of our State’s resources. More families relocating to Western Australia is great for jobs and local businesses and the families themselves.”
And when you look at the value offered by Perth, along with the lifestyle of living in WA there are plenty of reasons for interstate workers flying to our state to consider relocating to Perth.
In April 2020 the median Perth house price was $466,000, compared to $1.03 million in Sydney and $819,000 in Melbourne.
It almost goes without saying that given the economic impacts of COVID-19 and the likely impact on unemployment, it would be unrealistic to think the housing market will come out of this unscathed, at least in the short term.
However WA housing is not massively over-supplied, population growth will recover (and could get a significant boost as per my commentary above) and credit remains accessible and cheap!
So while it is impossible to avoid the fallout, WA is well positioned to come out of the other side of this global pandemic quicker and stronger than most.