WA Property Market Update November 2021
After a year of very different fortunes for the commercial and residential property markets in WA, our November update will look at each market and revisit the facts and figures that shaped the trends we saw throughout the year. Overall, the signs are still good for further economic growth in the New Year, although the recent announcements regarding the border re-opening in February and changes to travel restrictions may throw a spanner in the works – particularly if we re-enter lockdowns. But without dwelling on what might happen when WA opens up again, let’s get into the November 2021 WA Property Market update.
WA Office Property Market Update November 2021
In an encouraging bit of progression from previous months, it appears that the Office market in Perth has moved into the start of its recovery phase. Following subdued conditions throughout 2020, the six months to July 2021 saw a drop in office vacancy rates from 19.9 per cent to 16.8 per cent; and the final six months of the year brought about a notable increase in sales activity in this market, particularly in West Perth (which is good considering the suburb is statistically the “worst performing non-CBD office locality in Australia”).
Strong interest from the mining and resources sector, and their desire to secure quality office space in or near the city centre, was a primary driving force behind these figures. With the likelihood being that the industry will continue to perform well, there is cause for optimism in the office market moving into the new year.
WA Residential Property Market Update November 2021
The outstanding surge of activity we saw in WA over 2020 and 2021 in the face of the global COVID-19 pandemic had a few different outcomes. For one, demand for houses and units rose significantly, as net migration out of the state dropped sharply; the cost of borrowing came down with incredibly low interest rates; and rental vacancy rates remained at or below 1.0 per cent for much of the year. All of these factors contributed to substantial growth in the median house and unit price across the state – great news for those looking to sell but not so much for those looking to buy. Predictably, the continuation of WA’s hard borders with pretty much everywhere means this looks set to continue, however the impact of changing restrictions in February likely won’t be fully understood until that time.
Property sales and listings data remains in-line with the same period in 2020, however the rental market is still showing signs of extremely few options and tough conditions for prospective tenants. There were around 30 percent fewer properties rented in the week ending 19 December 2021 compared with the same time last year, and a 19 per cent decrease in the number of properties available for rent for the same period. Until borders open up fully and migration out of WA increases, these difficult rental conditions and high prices are probably going to stick around for the short to medium term.
The uncertainty around the real impact of WA’s borders reopening in February 2022 means that it is hard to say what will happen to the property market. Our strong economy has propped us up throughout the pandemic, but potential further lockdowns and rising COVID case numbers may have a part to play on the outlook for the WA property market in the new year. Rest assured, no matter where you’re at in your property journey – whether you’re looking to buy your first home, upgrade, downsize, or invest – the Finance team at McKinley Plowman will be behind you in 2022 to get you the best deals for your circumstances and goals. Make one of your New Years’ resolutions to get in touch with us and finally make moves to achieve your property dreams. You can reach us on 08 9301 2200 (Joondalup), 08 9361 3300 (Victoria Park), or via our website.
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