After a bullish 2021, Perth house prices and rents are expected to skyrocket again in 2022.
According to REIWA, Perth house prices will rise a further 10 per cent next year, following 14 percent growth in the past year.
REIWA President Damian Collins said the market was firmly in recovery.
“Despite the strong price growth recorded in 2021, WA is still the most affordable state in the country for housing, with prices in most regions across the state yet to catch up to their 2014-15 peaks,” Mr Collins said.
If predictions are correct it will mean the median house price in the metro area will jump from $520,000 to $575,000 by the end of 2022.
The outlook for 2022 is positive, however interest rate increases loom as a possible deterrent.
“Interest rate rises have the potential to slow the market in 2022. Whilst most people are aware that interest rate rises will occur at some stage, if there are multiple interest rate rises too close together, this could reduce market activity and slow projected growth,” Mr Collins said.
“It would be unlikely to derail the market entirely though. WA has some of the most affordable housing in the country and one of the strongest economies in the world. We also have very low ‘for sale’ and ‘for rent’ stock. All of these factors point to another strong year of growth.”
Median rent prices are also estimated to increase between 10 and 15 per cent during 2022, which will attract investors.
“Tenant demand will remain high in 2022, which will see rents continue to rise. Despite this, the Perth rental market is still very affordable, with WA tenants enjoying the cheapest rental market conditions in the country,” Mr Collins said.
Market conditions across regional WA are expected to remain strong in 2022, with lifestyle predicted to be a key growth driver.
“Port Hedland was the top performing regional centre in 2021 for price growth, largely fuelled by the resurgent mining industry,” Mr Collins said.
“In 2022 we anticipate lifestyle to be a driving factor behind where people to choose to live, especially if there are local employment opportunities in regional areas.
“We have some of the most affordable housing in the country, especially in our regional towns. They offer enviable lifestyle opportunities and are likely to attract strong demand from buyers as WA’s population starts to grow again.”
Sourced from PerthNow