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Perth Tipped For Significant Residential Growth in 2022

Perth Tipped For Significant Residential Growth in 2022

3 months ago By Emily Harris
Perth Residential Growth Blog Image

Perth still stands as one of Australia’s more affordable capital cities for first home buyers according to the National Housing Finance and Investment Corporation (NHFIC). The NHFIC’s latest analysis (released in December last year) reported that Perth’s “prospective first home buyers experience much more favourable opportunities to buy their first home, with income earners in the second quintiles (in the top 60% of income earners) being able to afford around 30% of properties in the market”[1] (Bell, 2022). Experts believe this relative affordability will see demand for Perth property continue to surge in 2022, which means another busy year is on the cards for the state’s residential construction sector.

Indeed, new figures from the Urban Development Institute of Australia (UDIA) show WA land sales grew 15% in the December quarter, while prices remained relatively stable with a 1% increase in 2021. According to the Urban Development Institute of Australia’s WA chief executive Tanya Steinbeck, despite the end to stimulus measures and border restrictions, the WA economy has continued to experience growth and in turn, demand for residential property has also remained high[2] (Macdonald, 2020). Tim Lawless who is the research director of financial services company Core Logic, agrees with this sentiment stating that “there is a significant amount of residential construction work in the pipeline that has been approved but not yet completed”[3] (Le May, 2022).

A prime example of this is the Riverbank residential development planned for the banks of the Swan River, which this week achieved its full EnviroDevelopment certification (a way to help buyers identify and choose more environmentally sustainable homes and lifestyles). The 52-hectare Rivermark estate is 16km from the Perth CBD and is set to comprise of about 650 homes. The masterplan community also plans to implement comprehensive design and construction guidelines and aim to incorporate environmentally friendly materials including green concrete, recycled road materials and renewable energy[4] (The West Australian, 2022). 

Meanwhile late last week it was announced that more than 60,000 sqm of the government’s Perth landholdings as well as two regional sites will be released to the market, making it one of the state government’s biggest-ever metropolitan land releases. The vacant lots earmarked for hundreds of apartments and social housing are located by the beach like East Freemantle, the river like Cannington, city and METRONET transport hubs and regional locations like Kalgoorlie and aim to boost housing diversity across the state[5] (Macdonald, 2022). While construction on these projects aren't likely to commence for another two years, it bodes well for the state’s residential construction pipeline. 

Furthermore, with the WA premier announcing late last week that the state will reopen its interstate and international border on March 3, experts are now predicting that the property market will experience even more of an uptick for the remainder of 2022. According to Chief Economist of the residential real estate franchise PRD Dr Diaswati Mardiasmo, the number of Australians that have relocated to Perth, reached its highest points in the past 8 years, which in turn has increased demand for housing (Bell, 2020). 

Meanwhile, Sean Hughes, who is the coastal managing director of the property services organisation Realmark, has stated that investors are starting to trickle in to WA – especially from the east coast- and want to diversify their portfolio, believing WA to be the next area of growth. Considering WA’s hard border will come down on March 3 (as of the 22nd of February) allowing triple-dose vaccinated arrivals from interstate to enter WA without quarantining, property analysts predict WA could see some 20,00 people relocate to the state for employment opportunities over the next year[6] (Calautti, 2021).

This again suggests the WA residential construction sector is in for another busy year, as it tries to balance this significant increase in demand with labour and supply shortages. The silver lining, however, is for professionals working within the sector as this level of demand should present a number of exciting opportunities for those looking for a new challenge or wanting to further develop their career. Watch this space!

CONTACT US

For those interested in finding out more – about the Perth residential construction job market overall or the specific opportunities our Perth team currently have available, feel free to reach out to us at:

info@designandbuild.com.au

or view the opportunities here: https://www.designandbuild.com.au/jobs/perth 

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[1] Bell, A. 2022. Perth Suburbs Tipped For Growth In 2022. Perth Suburbs Tipped For Growth In 2022. Savings.com. Retrieved from: https://www.savings.com.au/home-loans/perth-suburbs-tipped-for-growth-in-2022  

[2] Macdonald, K. (2022). Perth New Land Sales Defy Logic With Skyrocketing Demand Amid Stagnant Prices. The West Australian. Retrieved from: https://thewest.com.au/business/commercial-property/land-sales-defying-logic-with-skyrocketing-demand-amid-stagnant-prices--c-5700598  

[3] Le May. (2022). Construction Costs Surge Tipped To Push Up Residential Property Prices. The Australian. Retrieved from: https://www.theaustralian.com.au/news/latest-news/construction-costs-surge-tipped-to-push-up-residential-property-prices/news-story/44b5e88ac1ff1f9300dde7a4d2227555

[4] The West Australian. (2022). Pushing The Envelope. The West Australian. Retrieved from: https://thewest.com.au/lifestyle/real-estate/pushing-the-envelope-c-5747836

[5] Macdonald, K.(2022). State Government identifies 12 ‘Lazy Land’ Sites Set For New Accommodation With One Fifth To Be Social Housing. Retrieved from: https://thewest.com.au/business/housing-market/state-government-identifies-12-lazy-land-sites-set-for-new-accommodation-with-one-fifth-to-be-social-housing-c-5729553

[6] Calautti, L. (2021). Perth Tipped To Be A Hotbed Of Property Investor Activity In 2022, With Double-Digit Growth Forecast. Realestate.com. Retrieved from: https://www.realestate.com.au/news/perth-tipped-to-be-a-hotbed-of-property-investor-activity-in-2022-with-double-digit-growth-forecast/