2022 is already a remarkable year for Western Australia’s property market as it is set to experience healthy price growth, rental yields and investment, according to the industry experts. Despite the growing property prices, Western Australia will remain the most affordable state in the country for residential properties.
Perth – the Most Affordable Capital City
Though the property value of Perth is predicted to rise further by 10% in 2022, Perth is still the most affordable capital city in the country to invest in the properties.
Firstly, let’s begin with the year 2021. We entered 2021 with much anxiety and caution as the pandemic was taking a toll on all economic activities that highly influenced the property market. Despite that situation and the borders being closed most of the time, 2021 saw a pretty reasonable growth in the property market. The property prices in Perth continued to rise to levels that were not seen since the 2014 to 2015 housing cycle peaks.
According to a report from CoreLogic, house prices in Perth rose by 13.1% and reached a median price of $520,000 in 2021. However, it was still smaller compared to Sydney, which saw an annual growth of 25.3% with a median value of $1,098,412.
The Perth housing market showed a definite upswing during the second half of 2020 and the first half of 2021, with a reduced monthly pace of growth during the second half of 2021.
“Although the monthly pace of growth has picked up a little, Perth remains one of the softer capital city housing markets for value growth,” said Mr Tim Lawless of CoreLogic.
“The city’s median home value currently lies at $528,551 according to CoreLogic, which is well below the median of $793,658 across Australia’s combined state capitals,” said Ms Wakeman, General Manager of Momentum Wealth, a Western Australian investment company.
Therefore, Perth is undoubtedly the most affordable capital city in the country.
Good News for Investors As Rental Yields Rise in Perth
The 2022 Western Australian property market predictions are nothing but good news for investors.
As for rental yields, Sydney is at an average of 2.4%, Melbourne at 2.7%, and Brisbane at 3.7%, whereas Perth’s rental yields are at 4.4%.
According to research by Momentum Wealth, 2022 will provide a level of affordability, strong price growth, high rental yields and a robust economic setting for investors.
“Investors looking towards Perth are not only benefitting from more affordable entry into the market, but they are also getting more for their budget in terms of land value, property size and proximity to the CBD – all key drivers of capital and rental growth,” said Ms Wakeman.
What To Expect in 2022?
As of 2022, The Real Estate Institute of Western Australia (REIWA) predicts a 10% growth in the Perth median prices. With borders reopening and increased job vacancies, the housing demand is expected to increase in Western Australia.
“Despite the strong price growth recorded in 2021, WA is still the most affordable state in the country for housing, and with prices in most regions across the state yet to catch up with their 2014-15 peaks,” noted REIWA President Damian Collins.
REIWA also released the sales trend for 2020 and 2021, pointing out that the same trend continues in 2022. According to the report, the average weekly sales in 2020 was 680, whereas it was 865 in 2021. Perth is expected to see healthy housing demand in 2022.
Affordability, lower past interest rates (although set to rise), and increased immigration all make 2022 fruitful for investors and first home buyers in Western Australia.
Real Estate in Perth
If you’re looking to grow in an immerging Perth suburb, then Ravenswood, WA, is the perfect place to find affordable land to build your dream home. Ravenswood Waters is a growing estate that is currently selling land for savvy buyers looking to establish roots in this beautiful community or looking for a smart investment property. Find out more here.
