Perth’s residential property sector is expected to continue to grow despite mining investment reaching its peak over 2013-2014, new research from CBRE says.
CBRE’s Australian Residential MarketView report for the first quarter of 2013 showed the Perth residential market recorded the most improved levels of buyer activity among capital cities.
The report showed house sales volumes increased 16.2 per cent in the 12 months to March 31, while units recorded a 20.9 per cent lift.
National averages were a 6.1 per cent rise in house sales and a 6.9 per cent increase for units.
Over the same period, the median house price in Perth rose 1.8 per cent to $469,000, CBRE said.
CBRE senior research manager Sam Reilly said he expected demand to taper off slightly as mining investment shrinks over 2013-2014, but reiterated the market fundamentals were strong.
"Perth is expected to see growth in the propety sector, with building approvals trending up as demand levels for vacant land continue to build," Mr Reilly said.
"Following a sustained period of low activity levels in the residential construction sector, prospects are improving, which may in fact attract some construction workers back to Perth from areas such as the Pilbara as new job opportunities begin to arise."
CBRE director of residential valuations Michael Veletta said a shortfall of homes coupled with nation-leading population growth in Perth was enticing more investors into the market.
“In particular, there is strong demand for units across Perth, which is prompting investors to look at future medium to high density development opportunities,” Mr Veletta said.
The report showed average house rents rose 6.8 per cent to $470 a week over the 12 months to March 31, while unit rents recorded growth of 12.7 per cent to $445/week.
“The rapid rise in rental growth has acted as a greater incentive for first home owners to move out of rental properties, which has served to further stimulate buyer activity,” Mr Veletta said.