Published on April 18th, 2013
Population growth ‘driving force’ in Perth market
The residential real estate market in Perth has been experiencing the benefits of Western Australia's rising population, as the state reached almost 2.5 million in September 2012.
According to the Australian Bureau of Statistics (ABS), Western Australia has seen record amounts of population growth and also experienced the highest annual growth rate in 40 years (3.4 per cent, or 81,700 people).
The influx of people moving to the state included local births, and domestic and overseas migration.
State franchise manager for the Elders Western Australian branch Phil Melville stated that the recent high
levels of growth in population has been the "driving force" in the property market – especially for properties priced under $600,000.
This increase in population is good news for both property investors and sellers, as it means that there is a high level of demand from renters and purchasers.
"It is impacting on the lower end of the market, and it's impact is positive – prices are rising," said Mr Melville.
In a January 2013 article from the Real Estate Institute of Western Australia, it had been reported that there was a 57 per cent increase in sales in the western suburbs of Perth. This increase in sales could well be attributed to the large rise in the city's population.
Population growth in Perth has lead to the real estate market becoming very competitive, and house and rental prices have risen quickly.
"The days on the market have really shortened up. So if property is priced well, it sells very quickly. However, once you get over that $600,000 bracket, it does slow up," said Mr Melville.
There has not been a knock-on effect for real estate priced in higher end figures, with more expensive properties seeing slower rates of price growth.