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WA Property Market Update – April 2022
Well, what a difference a month can make! In the March edition of the WA Property Market Update, we met the opening of the WA state border with great joy and optimism, and now that we’re in April we’ve seen a significant lifting of COVID restrictions, and the Federal election has been called for 21 May. As businesses and individuals travel the long road to returning to normal, the property market is taking a similar journey. Strong conditions in Perth have resulted in a further increase to dwelling values (1.0% in the last month alone), meanwhile the industrial market continues to perform well despite delays in the construction industry. Here is your WA Property Market Update for April 2022.
Residential Property Market Update April 2022
Just about every demographic of potential homebuyer in the WA property market is active right now. Many newcomers to the market can still enjoy some government incentives when purchasing their first home (stamp duty rebate and the First Homeowners Grant) and also the First Home Loan deposit schemes (New & Existing properties) and Family Home Guarantee scheme; investors continue to snap up properties to enjoy strong yields currently on offer; and many West Aussies with increased disposable income are actively upgrading their home or location. Higher construction costs and delays in delivery, as well as the expiry of incentives like HomeBuilder, has slightly impacted the appetite for building new homes. Suburbs where construction activity has been strong in recent years, especially in Perth’s outer suburbs, are now gaining popularity as places to buy recently built homes on decent sized lots, still at reasonable prices.
The continued growth in the Perth market is having an impact on the national growth rate. As the rate of growth in Sydney and Melbourne slows (like it has been for a few months), an overall national increase has still been achieved thanks in part to the strong WA property market. This momentum looks set to continue now that the borders are open.
Industrial Property Market Update April 2022
Anyone who has signed a contract to build a home or driven on major Perth roads in the last year or two will know all too well that there are significant shortages in the construction industry. This extends to personnel shortages as well as supply and logistics. Despite this, it appears that prospective tenants of industrial premises are preferencing design and construct agreements to secure their ideal location.
Recently created industrial estates such as Tonkin Highway Industrial Estate in Bayswater and Roe Highway Logistics Park in Kenwick have seen increased construction activity and put upward pressure on prices in the sector. Warehousing, transport, and logistics facilities are still in strong demand. Some older facilities are being taken up by tenants where upgrades and enhancements are possible, even where they have sat vacant for a prolonged period. Eastern states investors are still active in the market, due in part to the low interest rates still on offer. The outlook for the industrial property sector in WA looks positive through April and further on into 2022. Open borders and positive net migration should theoretically bring with it a steady stream of personnel and materials to support the construction industry, and in turn the development of high-quality, in-demand facilities.
The prevailing conditions in the WA residential and industrial markets means that there are still great opportunities available for prospective homeowners, investors, families, and business owners. If you fit into any of those categories, the time to act is now. With a rate rise likely to arrive in the coming months, the sooner you get in touch with a broker, the better. Whether you are looking to refinance your home loan, upgrade the family home, secure an investment property, or scale up your business premises, McKinley Plowman’s Finance team are the people to speak to. You can reach us on 08 9301 2200 or via our website.
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