Perth house prices have skyrocketed, hitting a median record of $622,000 during the post-COVID “race for space”.
Domain figures show the price of a house in the city surged by a whopping 1.5 per cent in the first three months of 2022.
The increase means prices are now well above the $616,000 median recorded during the housing boom of 2014.
The figures don’t include units and apartments and follow a post-lockdown trend towards bigger backyards, over communal amenities.
And even though you’ll need a fat wallet to get yourself a home in Perth, Domain economist Nicola Powell says it’s likely we can expect second wave of demand in WA.
Ms Powell is tipping the interest in Perth to surge due to WA’s open borders and pointed out that, while house prices have risen, they are still relatively affordable compared with the rest of the country.
“Easing of WA’s border restriction in early-March could accelerate another wave of new demand, freely allowing an easier relocation from overseas and interstate providing clarity for residents, this could create a population shift, with some residents opting to return home,” she said .
“This is a trend to watch as given the timing, these drivers are unlikely to have made an impact in the March quarter.”
Real Estate Institute of WA president Damian Collins has previously told how the Perth property market had experienced a remarkable turnaround over the past two years since the pandemic began.
“At the time, some commentators and financial institutions were predicting 20 per cent price declines. Thankfully, the downturn was short lived and only small,” he said.
After the first lockdown, people began to take advantage of WA’s affordable housing and low interest rates, Mr Collins said.
REIWA data revealed there were only 7796 properties for sale in Perth at the end of March compared to 12,295 at the same time in 2020 – a 37 per cent decline.
“The pandemic has seen a return to net interstate migration into WA, which has certainly exacerbated Perth’s housing shortage, with far fewer properties available for sale than there was this time two years ago,” Mr Collins said.
“With the borders now open, we are hopeful more skilled workers will be attracted to the state to help complete construction and create new housing.
“We don’t anticipate market conditions slowing any time soon, with a further 10 per cent price growth expected in the 2022 calendar year.”