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Population growth good news for WA property market

Posted 29/12/22

“Western Australia’s population grew in the June 2022 quarter, up 0.4 per cent on the March quarter and 1.3 per cent higher than the same time last year.”

WA recorded growth in both interstate migration and overseas migration over the year.

Both New South Wales and Victoria saw negative interstate migration.

REIWA CEO Cath Hart said there were many factors behind WA’s population growth.


“According to State Government’s Mid-Year Budget review, the WA economy has done the bulk of the heavy lifting in Australia since the onset of COVID-19, accounting for 23 per cent of national economic growth over this period – more than double the State’s population share and the largest contribution of all jurisdictions,” she said.

“State Final Demand is forecast to grow by 4.5 per cent in 2022/23, underpinned by strong household consumption and rebounding business investment.

“Conditions in the WA labour market remain strong, with the unemployment rate forecast to average just 3.5 per cent over 2022/23.

“All of this makes WA a very attractive place to live, and the appeal increases when you consider we have the most affordable median house price among the capital cities, a fantastic climate and enviable lifestyle.”

Ms Hart said ongoing population growth would support the demand for housing and help maintain the stability of the property market in the face of interest rate uncertainty.

“So far WA is weathering interest rate rises well, buoyed by our economy, jobs market and affordable housing,” she said.

“While borrowing capacity has reduced since the RBA started lifting the cash rate in May, buyers in more affordable markets like WA do not have to adjust as much as those in more expensive markets. Buyers have been able to absorb the changes and the market is holding steady.

“The State Government expects housing demand to increase over 2022/23, underpinned by continued population growth, and this will further support property prices.”

Ms Hart said the greatest issue facing the WA property market was the shortage of housing in both the sales and rental markets.

“This is particularly challenging for people moving to WA, many of whom like to rent before buying,” she said.

“There is some positive news: according to reiwa.com data the number of rental listings has been rising in the past few weeks, although it is still lower than at the same time last year.

“Our members are also reporting increasing investor activity, particularly from Eastern States investors who see value in WA’s house prices and the potential for strong rental returns.

“This should see the availability of rental properties start to increase.”


Read the full article here

Author: REIWA

Source: reiwa.com.au

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Bailey Devine Real Estate

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