Renewed Optimism for Perth: and what it means to you
by Damian Will, Sales & Marketing Manager
After a brief hiatus to assess the impacts of COVID-19, activity in Perth’s residential market is gathering renewed momentum.
Of course the WA economy still faces some challenges, but, just like after the GFC in 2008, WA is poised to come out ahead of other states with a recovery driven by the resources sector.
Affordability, low interest rates and government grants are all playing their role as we tread the post-pandemic recovery path.
Being at the coal face we can tell you that demand for new homes is at levels not seen for many years and when the numbers are finally released a month or two from now you will see that building approvals across the Perth metro area have sky rocketed since the new financial year began.
It will come as no surprise then that local media have been reporting a spike in online searches for Perth property which are up 30% over the last 12 months.
What this means for prospective property developers
Simple economics tells us that demand will soon outstrip supply for high density housing in premium locations, and thus place upward pressure on prices.
This will be driven by two key factors:
- As Perth is set to be the leading capital city for economic development we could expect to see an influx of workers move here once the borders open again. AKA an increase in demand.
- Apartment supply will fall significantly in inner-Perth over the next 2 years. There are only a handful of smaller boutique developments expected to complete in 2021 and existing major developments are now complete and selling their final remaining units.
This all combines to make a compelling case to consider building your next development sooner rather than later.
If you would like some help weighing up the options available to you, doing the research and looking at the numbers in detail, give us a call on (08) 9240 6020 or send us an email