Perth is poised to lead Australia’s house price growth in 2021 as interstate migration and a soaring economy pushes the city’s property prices up and up.
Property data released by CBRE has revealed that the Western Australia capital is on track to kick on ahead of Brisbane, Melbourne and even Sydney, with Perth house prices predicted to grow between 9-12 per cent this year.
CBRE’s Head of Residential Research, Craig Godber, says that Western Australia’s healthy economy was a key factor in the growth forecasts.
“A return to positive interstate migration, accompanied by a solid resources sector outlook, is helping propel Perth’s housing market recovery ahead of the nation,” he says.
“Federal Government incentives such as Homebuilder and additional State support packages are boosting the construction sector and further contributing to growing confidence in the market,” Craig explains.
Craig goes onto say that Perth’s low level of housing stock, that is echoed nationwide, is also driving competition for property through the roof.
“Supply also remains tight, with vacancy already sub-1% which is leading to strong rental growth and providing attractive opportunities for investment in 2021,” he says.
Sydney and Brisbane are also predicted to follow a similar upward trajectory to Perth in 2021 with regional areas also set to prosper due to the knock-on effects of COVID-19.
A significant preference shift has occurred – with the ability to work from home and lifestyle choices driving a shift towards regional markets and the smaller capitals.CBRE’s Head of Residential Research – Craig Godber
House prices in Sydney and Brisbane are expected to grow by 7-10 per cent whilst Canberra and Adelaide are forecast to see a slightly smaller rise between 5-7 per cent.
Melbourne is predicted to see house prices rise by a modest 3-5 per cent as the hangover of prolonged lockdowns are still having a slight effect on the city’s property market.