““We can expect to see house prices and rents continue to rise,” said REIWA CEO Cath Hart.”
REIWA CEO Cath Hart said demand for established homes will remain strong following the release of the latest population data.
According to the ABS, WA’s population grew 2.8 per cent to 2.855 million in the year to March 2023, the fastest growth rate of any state and territory.
The March quarter 2023 alone saw an increase in WA’s population of 26,005, which is a 0.9 per cent increase and the biggest quarterly change in number in ABS records back to 1981.
The news comes as Perth’s vacancy rate tightened to 0.8 per cent in August and rents and house prices set new records over the month.
“We have a significant imbalance between supply and demand and this will maintain the pressure on WA’s sales and rental markets,” Ms Hart said.
“We can expect to see house prices and rents continue to rise, homes to sell and lease quickly and the vacancy rate to remain at near-record lows for some time yet.”
Ms Hart said the low number of homes being built will have long-term consequences.
“While there are about 20,000 homes under construction currently, they’re meeting previous demand rather than future demand,” she said.
“Only around 14,000 new dwelling commencements are expected this year, with new builds in the apartment market at extremely low levels.
“Until we can get a strong and consistent pipeline of new dwellings, we can expect to see ongoing pressure in the established market to house our growing population.”