Friday, 15th of January 2021
As we venture into 2021 the early signs for investors are positive as the Western Australian property market is poised for notable growth. We are looking forward to a positive, healthy and prosperous year ahead… here’s why!
Record low interest rates, all time low vacancy rates, a resurgence in consumer confidence, improved economic activity, a booming mining sector, increased net migration and numerous government stimuluses have WA investors perfectly positioned to capitalise on the property market. Investors will be able to maximise their opportunities by either acquiring new properties for their portfolio, or introducing new strategies to maximise rental returns.
Predicted Growth For WA Property Values
Economists and property experts have tipped the Western Australian property market to boom, with property values predicted to grow as much as 12% during 2021.
The prediction of WA housing value growth by REIWA is slightly more conservative sitting between 6% and 10%. But regardless of the source of the data, housing prices are primed and ready to rise, presenting an attractive offer for investors to snap up bargains and add to their existing portfolio.
As we covered in our recent article WA Leading The Nation’s Economic Recovery, there are a number of contributing factors helping to position Perth perfectly at the base of the growth curve, including record household spending, record iron ore exports and strong economic growth.
Perth Property Predictions For 2021
WA is poised to become the largest growth state in Australia, and property experts are beginning to outline exactly where this growth is likely to stem from.
Some of these predictions include:
- Rental prices are set to increase from March 2021 as the Residential Tenancies (COVID-19 Response) Act expires, giving way to rental increases in an already highly competitive market.
- The early part of the year is tipped to see the vacancy remain low as supply struggles to increase as fast as demand.
- Key infill locations becoming popular growth areas due to increased project activity from the government. Investments into infrastructure and associated amenities will improve inner-city and central areas, helping to drive new levels of demand.
- An increase in activity within the luxury markets, particularly in the Western Suburbs thanks to government grants helping to improve affordability, as outlined in this article from The West.
- As identified in this Domain article, given the move towards remote working, outer suburbs have also been highlighted for potential investment opportunity.
Prosperous Opportunities for Perth Property Investors
With the Residential Tenancies Act expiring at the end of March 2021, investors will have an opportunity to increase rents. Given rents have been stagnant over the last few years, this is a welcomed sign for landlords currently experiencing a freeze in rents. Having said that, Perth is still one of the most affordable capital cities for rental properties in Australia.
According to REIWA, Perth could see rental rises as much as 10-15% this year, particularly as travel bans and restrictions begin to ease.
Record low vacancy rates, combined with the ongoing rental shortage and forecasted property value increases all present an exciting opportunity for Perth investors. Now more than ever, there is an ever-present need for property investors to partner with the right property management agency in order to make the most out of this unique opportunity and maximise their returns.
Green Shoots - The Property Market Recovery Has Already Begun
Perth has led the way nationally (and indeed globally) when it comes to COVID-19 prevention and containment, and as a result, dwelling values grew 1.1% during December 2020. Further to this, Australian home values also finished 3% higher at the end of 2020, with a surge towards the second half of the year providing much needed consumer confidence throughout the national property market.
“The number of residential property sales plummeted by -40 per cent through March and April but finished the year with almost 8 per cent more sales relative to a year ago as buyer numbers surged through the second half of the year.” Tim Lawless - Research Director at CoreLogic
Partner With The Right Agency
Whilst the signs are positive and property experts are tipping growth opportunities in the early quarter of the year, there has never been a more important time for investors to ensure they are aligned with the right property management agency. An experienced and skilled property manager will be able to guide them through this period of growth in order to maximise returns and reap the rewards of the property market growth curve.
If you would like to discuss how our award-winning strategies at Perth Property Management have helped to position and prepare our investors for 2021 and beyond, we welcome you to contact us for a free appraisal today. Or if you’d simply like to talk to us about how we can help you get the most out of your property, our award-winning property managers are here to help!