Opening the door on 2022 – The West Australian
Perth’s residential property market was red hot last year, but what will the new year bring? West Real Estate asked industry experts to share their thoughts on what to expect in 2022.
Article by KEREN BELLOS
Despite commentary from various conflicting sources, everyone loves to speculate on the property market, however fundamentals and economic factors of supply and demand will drive the market in 2022.
At present, the WA market is experiencing all- time low stock levels and severe rental shortages. This will further deteriorate once the borders open.
The current pressures and rising construction costs due to the recent stimulus packages will also amplify the demand and reduce stock levels.
It is very likely WA’s COVID-safe reputation has now positioned us as a global brand, attracting further interest in what was already one of the world’s most liveable cities.
Strong demand will come from our nearby timezone-sharing neighbours, who will no doubt see Perth and WA as the superior option to other states and countries.
In addition, national migration will flock to WA due to the strength of our economy, which is mainly led by construction and mining.
The major driver in the market, however, will be investors.
Investors are the sleeping giant that will awake, fuelling a second growth wave in 2022.
Ronnie Michel-Elhaj, Nicheliving Managing Director