Perth & Surrounds – Haynes

Perth is in a strong position to rebound from Australia’s pandemic-induced recession with a number of major development projects under way across the city. 

Western Australia could see some 20,000 people relocate to the state for employment opportunities in 2022.

Property analyst and valuer Gavin Hegney said there were not enough properties to cope with the influx.  “At the moment though we have less than 2000 properties available for rent and less than 10,000 properties that can be bought, meaning that we can only really handle an influx of 8000 people before our market is tight as a drum,” Mr Hegney said.

Perths residential market, which has still not recovered from the mining boom and slump—suffering a six-year downturn—is now tipped to outpace its east coast rivals due to a low reliance on tourism and population growth and rebounding iron ore sector.

Real Estate Institute of WA president Damian Collins said a housing shortage remains in Perth with not much stock and the rental market facing a new 40-year low vacancy rate.

The fact that builders are struggling to produce new housing due to the labour shortage in that space, it means not as much stock is going to be built as urgently needed,” Mr Collins said.

The institute has predicted median rent prices will increase between 10 and 15 per cent in 2022.

“Tenant demand will remain high in 2022, which will see rents continue to rise. Despite this, the Perth rental market is still very affordable, with WA tenants enjoying the cheapest rental market conditions in the country,” he said.

Demand for premium commercial space is also set to increase, as major players across the resources sector continue to strengthen their foothold in Western Australia.

Commercial development is picking up steam in the city’s massive waterfront precinct at Elizabeth Quay where the Metropolitan Redevelopment Authority is working on upgrading the infrastructure.
The project will include the creation of 10 private lots, an inlet that brings Swan River into the city, refurbishment of Barrack Square and many other improvements to transform the entire area.
Resources giant Chevron Australia, Brookfield Property Partners and AAIG are all currently undertaking major projects within this redevelopment.

To drive the infrastructure further is the Perth City deal, a $1.5 billion partnership between the Commonwealth Government, WA Government and the City of Perth to re-energise the city, bringing Government and private investment into the CBD and creating almost 10,000 jobs. 

Further infrastructure being built within the City is the Perth City Link, a series of projects to sink the northern rail line and create a 13.5 hectare site between the Perth Arena and Horseshoe Bridge.