MEDICUS May 2022

Property affordability and strong economic growth continue for WA I n the two years since the pandemic began, Western Australia has experienced the strongest economic performance in the nation across most sectors. And we can expect to see another surge of consistent buyer activity, with increasing demand from both domestic and international travellers returning to WA. With the State’s economy holding strong, Perth has become the place to live and work, and potential buyers and investors are actively trying to get into the market. The city is also showing a robust recovery in property prices, with demand now outstripping supply in many corridors across new and established markets, something which will continue to put upward pressure on property prices. Following the government grant stimulus, we are still seeing strong demand in new home builds, with first home buyers very active in the market due to ongoing pressure in the rental space. According to SQM Research, in the three years prior to February, Perth’s vacancy rate has fallen from 5 per cent to 0.6 percent, while the asking rent for houses has increased by 13.7 per cent. The Bankwest Curtin Economic Centre has also found that home loans for WA owner-occupiers increased by 150 per cent between 2020-21, and home loans for investors have risen by more than 55 per cent over the last year alone. Yet despite the strong market conditions and price growth, Perth still has the most affordable median house price of any capital city in the country. The most recent data from the Real Estate Institute of Australia (REIWA) showed Perth’s median house sale price had increased to $508,000 during April. With capital growth and increased construction costs, people may feel trepidation to enter the market. But compared to the rest of the country, WA still presents a great value proposition. Considering our GDP, low unemployment and high median wages, we are a great value state for people to live. And the best part, we experience the most amount of sunshine in the country, with 147 sunny days a year. In a bid to ease trade shortages and keep housing construction moving forward, the WA Government recently launched the Build a Life in WA campaign nationally and in New Zealand. The Government investing in this kind of labour recruitment should be a clear gauge of how buoyant the property market is right now, and the real pressures our supply chain is facing. I remain optimistic that continued demand coupled with our robust economy will equate to a strong 2022 for the WA property market. As for Summit Homes Group, it’s been a busy two years responding to the current market conditions, but in that time, we have ensured our business remains agile. We’ve grown our team significantly and we’ve worked hard to get our product mix right, so we are well positioned for the upwards growth the market is expected to see for the remainder of the year. ■ Adam Schaal General Manager Summit New Homes 46 M E D I C U S M AY 2 0 2 2 R E A L E S T A T E