Over the last couple of years Perth’s property market mirrored the State’s iron ore activity. Growth in wages, employment, and record population created more demand for housing than could be supplied.
As mining projects wind down skilled labour has become more readily available for WA’s construction industry. Combine this with recent building approval and land supply data and it would appear that housing supply is set to increase significantly. Perth has the most active first home buyer market in the country, meaning reduced demand for rental accommodation and a rise in vacancy rates.
While there have been job losses in WA’s mining industry Perth’s economy is still buoyant due to an unprecedented level of major projects. This includes hospitals, highways, casino expansion, entertainment and sport precincts, railway and airport upgrades, and inner-city revitalisation. There is a lot to like about Perth although housing has become very expensive. Perth’s property market will be firm, although not spectacular.