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Population growth is the last piece in the puzzle of fixing the market in Western Australia, and if it gains further momentum this year, the recovery will come sooner than most experts are predicting, according to one property expert.
The CEO of Peard Real Estate Group, Peter Peard, said that the latest ABS demographic statistics show that the WA market is primed for a take-off.
“The figures for the year ending the September 2017 quarter showed that the rate of population growth for Western Australia (0.9 per cent) is now in a recovery mode, with the state recording a higher population growth rate than SA, TAS and NT,” the CEO said.
The figures show that overseas migration has doubled over the quarter from 2,022 in June 2017 to 4,441 in September 2017.
The interstate migration out of WA has also declined during the same period.
Mr Peard said: “The huge exodus of people out of WA following the downturn in the resources sector combined with low rates of overseas migration had a major negative impact on the Perth property market over the past three years.
“However, there are signs that the state economy is now improving, and this will give a further boost to population growth.”
He added that one sign is online job advertising growing at its fastest rate in more than two years, with figures showing a significant 14.8 per cent uptick.
Mr Peard said that housing in WA is more affordable than in the eastern states as a result of oversupply in the wake of the so-called mining boom.
“The major oversupply of housing caused by the resources building boom has now come to an end, and this is reflected in a much tighter rental market, with rental vacancy rates of around 3.06 per cent,” Mr Peard said.
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