Data from CoreLogic shows that Perth home values have risen 18.1 per cent in the past year. The median value of a home in Perth is now $524,589, making it the most affordable city in Australia. Respected industry stalwarts Adrian Johnson, Quentin Lau and Ewan McConnell of Summit Developments agree the Perth property market is uniquely poised for continued growth, supported by several key indicators.
“Now is a prime time to invest in Perth property. We’ve managed to get through much of COVID-19 unscathed and are reaping the benefits of an enviably strong local economy that is on track for continued growth as borders open,” said Adrian.
According to the latest WA Government’s Highlights of WA Economy statistics, WA recorded a 1.4 per cent growth in Gross State Product (GSP) totalling $292.3 billion (2019-20). WA held firm its place as the world’s largest producer of iron ore and lithium and the world's third largest producer of LNG and gold. Outperforming all other states, WA enjoyed 1.5 per cent wage price index growth, 2.1 per cent inflation and average weekly earnings of $1,439.
The unemployment rate also remains the lowest of all the states at an impressive 3.9 per cent.
“Internationally and locally, Perth appeals to owner-occupiers and investors alike due to its affordability and sound economic performance, despite the global pandemic. The future looks bright in Perth,” said Ewan.
Although low, population growth in WA for the year was still positive. Overseas migration has historically been the major driving factor of Australia’s population growth but over the past 12 months, net overseas migration was negative. However, with borders opening and a return to previous migration figures on the horizon, population is expected to rise across the country.
In WA, an estimated 5,000 students alone are expected to arrive early 2022. With a significant housing shortage across the state, any growth in population numbers will place even more pressure on dwindling housing stock, further increasing Perth prices.
“As WA borders finally open, migration, international students, interstate relocations, holiday-makers and investors will flood the Perth property market. But we simply do not have the stock to meet the demand,” said Quentin.
In fact, during a recent panel with Housing Minister John Carey, Planning Minister Rita Saffioti and Lands Minister Tony Buti, Urban Development Institute of Australia chief executive Tanya Steinbeck said the sector was worried about land supply issues for much-needed development opportunities.
To ease the pressure of the housing shortage, many local councils in Perth have rezoned land to improve ease and efficiency of development.
“We are fortunate that most councils have rezoned land which could be developed by mum-and-dad property owners. Many homeowners might not be aware of rezoning in their suburb, or realise how accessible development is to everyday people. Perth homeowners that are sitting on land with development scope are in a once in a lifetime position to capitalise.” said Quentin.
Specialising in residential developments, Summit Developments have noted an approximate 75 per cent increase in residential developments such as in-fill projects and subdivisions since the start of the pandemic. Yet there is still an undersupply of dwellings to meet current demand.
“With building costs steadily increasing, now is the time to develop. The current window of Perth being the most affordable housing market will close,” cautioned Ewan.
Ewan, Quentin and Adrian collectively have over 55 years' experience in property development and working exclusively on strata developments. They know how to strategically design to budget, maximise the land potential, and ensure profitability. From first time investors, to seasoned property developers, they have assisted more than 1,400 clients profit from developing their block, while making the development journey smooth and efficient.
“Whether you’re a first-time developer or a seasoned investor, our experienced team will guide you through all the required processes, provide you with detailed, transparent costs upfront, and expedite planning approvals to unlock your block's maximum investment potential.” said Adrian.
While many builders have folded under the circumstances of the global pandemic, Summit Homes Group has remained strong and stable. Through the strength of the Summit team and the implementation of effective COVID-19 measures, Summit Homes Group has been able to continue building, renovating and developing to the highest quality.
“Perth homeowners who own a good size plot can get in touch now to find out if their land can be developed. There’s never been a better time to develop,” said Adrian.
Visit summithomes.com.au/develop to get in touch with Ewan, Quentin and Adrian.