Article by: Kim Macdonald, Journalist
Source: The West Australian
February 21, 2022
Real estate’s national peak body has tipped Perth to be the nation’s property hot spot for international and domestic buyers after the reopening of borders.
The Real Estate Institute of Australia predicts the WA capital will be the number one pick for buyers because of the strong economy, affordability and pent-up demand, which will heap pressure on prices.
Perth-based REIA president Hayden Groves said WA’s strong economy would be seen as a safe haven for property investors, while new migrants would be drawn by its strong jobs offering.
After Perth, he expects Brisbane and the outer suburban fringes in Melbourne and Sydney to benefit most from the influx of workers once international borders open.
While predictions about Perth’s popularity vary, experts broadly agree it will be one of the more popular markets because its properties are the most affordable in the country.
Within Perth, Mr Groves said the western suburbs were likely to be the most popular for those moving for executive jobs.
“We’ve seen some big increases in these areas in the past year but Cottesloe is still a lot cheaper than Dee Why (on Sydney’s northern beaches),” he said.
Mr Groves said an anticipated influx of British and Irish tradespeople were likely to favour moving into homes at the ends of the freeways, in the Joondalup and Mandurah areas, where there were strong family and community ties.
He anticipated Asian buyers, primarily Singaporean buyers, would largely focus on apartments — particularly those close to hospitals and universities.
Indian migrants are likely to favour the big homes, good schools and strong family ties on offer in Leeming, Rossmoyne and Bullcreek, he said.
Head of the WA branch of the peak body, Damian Collins, said opening the borders will bring a lot of extra demand.
“Given the limitations on foreign buyers who do not hold residency being able to only purchase new, they have typically gone for apartments and in some cases house and land packages,” he said.
“The 50 per cent off-the-plan rebate for brand new apartments also applies to the foreign buyer surcharge, which will encourage more foreign investment once the borders open again.”
Respected property analyst Gavin Hegney forecast Perth would be the third most popular destination for international migrants once borders reopen, claiming the heightened demand would likely kick in towards the end of the year.
He said tight supply, with only 100 new homes adding to supply every week, could not sustain an anticipated influx of about 20,000 people this year.
But he believes Perth is unlikely to be popular with east-coast centric buyers based in other capital cities, with Brisbane and the Gold Coast to be the big winners in the domestic reshuffle.
Lily Chong, director of IQI Australia’s Perth-based real estate agency, agrees Brisbane and the Gold Coast will be the country’s most popular destinations for international buyers.