08/12/2021 - 09:46

Perth house prices tipped to rise

08/12/2021 - 09:46

Bookmark

Upgrade your subscription to use this feature.

WA’s strong residential property market is expected to continue, with house prices predicted to increase a further 10 per cent into 2022, Real Estate of Institute Western Australia predicts.

Perth house prices tipped to rise
Perth house prices are tipped to rise by 10 per cent in 2022.

WA’s strong residential property market is expected to continue, with house prices predicted to increase a further 10 per cent into 2022, Real Estate of Institute Western Australia predicts.

REIWA president Damian Collins said this followed a 14 per cent rise during 2021, showing that the Perth market was still 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,” he said.

REIWA figures showed sales activity was strong in Perth during 2021, with average weekly sales of 865, up from 680 in 2020.

Mr Collins said sales often exceeded 1000 a week during spring, demonstrating strong demand.

“We anticipate sales volumes to hold at current healthy levels in 2022, which will put upward pressure on house prices over the next 12 months,” he added.

However, sale listings remain below historic averages, currently at 11 per cent lower than this time last year and about half what they were three years ago.

REIWA anticipates a modest increase in listings into 2022, with the resumption of migration expected to add to the demand for housing.

Mr Collins said potential interest rate rises into next year could slow the market.

“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.

Recent CoreLogic figures showed a modest increase in Perth house prices during November, with a 0.2 per cent rise.

This followed a 0.1 per cent drop in October and a 18.1 per cent rise in September.

Nationally, housing values lifted for the fourteenth consecutive month during November, with a 22.2 per cent increase in housing values in the past 12 months.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options