The Perth real estate market recorded its busiest week since 2013 after recording more than 1,000 sales of vacant homes and land during the week ending June 21, according to the latest market update from the Real Estate Institute of Western Australia (REIWA).
During the week, Perth reported 613 home sales and 412 vacant land sales. These two figures are significantly higher than the 52-week average.
The activity of selling established homes increased significantly, increasing by 7% compared to the previous week. Land sales, however, recorded remarkable gains.
Damian Collins, President of REIWA, said that the boom in land sales, which were at their highest level since August 2009, could be attributed to the various government grants and incentives announced earlier this month.
"The plans have certainly helped those undecided about a house and land package to make their decision faster, and we will likely see vacant land transactions stay above normal levels until normal. at the end of the year, when the plan ends, "he said.
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Five suburbs, in particular, accounted for the bulk of land sales for the week. These suburbs, which include Madora Bay, Baldivis, Maddington, Wellard and Hamond Park, are all located in the outer region of Perth.
"While things look positive for the real estate market, we hope that recent market activity will not only lead to the recovery we expected, but will also continue after government plans," said Collins.
Cath Hart, Executive Director for Western Australia at the Housing Industry Association (HIA), said that the home building industry in Perth and that the state should recover over the next 12 months.
Hart said stimulus packages announced by state and federal governments would likely stimulate consumer sentiment, which in turn would stimulate growth in housing starts.
"We now expect the September quarter to be the bottom of the prolonged recession in the residential building industry in WA that started in June 2014," she said.
According to HIA projections, the state should record 15,590 housing starts for the 2020-2021 fiscal year. This figure was higher than the previous expectation of 10,000 new homes, which took into account the impacts of COVID-19 on the housing market. Before the COVID-19 epidemic begins, the state is expected to build nearly 20,000 homes.
"The revised outlook for the state's homebuilding sector represents a 15% improvement over fiscal year 2019-2020, when we performed around 13,800 starts, while the sector finds some of the momentum that started before COVID-19, "says Hart.
The revised outlook took into account several factors, including the announcement of the construction bonus grant and the HomeBuilder program, plans to cut red tape in construction approvals, and the campaign to encourage interstate workers to fly by air and their families to settle in the state.
"These measures, along with the unique features of our extraordinary state, allow Western Australia to recover better, emerging from the global pandemic more quickly than other states as an attractive destination for commercial investment. and interstate and international migrants, "said Hart.
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