A robust residential market set to buck lockdown impacts
The West Australian property market entered 2021 in a position of strength. Presenting a high volume of sales transactions and enquiry figures – realestate.com reporting a 77 per cent increase in enquiries to buy in December alone.
This was mirrored in the residential rental market, where vacancy rates were sub 1 per cent and demand was escalated beyond levels seen since 2013.
The announced 5-day lockdown period for the Perth Metropolitan, Peel and South West regions which took effect 6:00pm Sunday 31 January 2021 will put a temporary hold on some real estate activity, as many actions are restricted under WA Government health advice.
John Percudani, Managing Director of Realmark Group shared insights into the expected immediate and long-term impacts the second lockdown may have on Western Australia’s residential property market.
“The health and wellbeing of West Australians is first and foremost considered above all other priorities. Generally speaking, the McGowan Government has earnt respect and trust from the State to act swiftly and respond to the pandemic situation.
“This guidance plays a key part in protecting Western Australians from the health risk, while reducing some of the economic impacts we may have experienced otherwise,” said Mr Percudani.
“Our learnings from experiencing similar circumstances in March 2020 indicate key market fundamentals do not disappear despite temporary interference.
“It’s expected Western Australia will continue to experience the strong contrast of demand heavily outweighing residential housing supply, finance continues to remain extremely affordable, and demands for those looking to return and reside in WA will continue to provide healthy population growth – all feeding the continued strength of our property market.
“It’s expected these fundamentals will continue to percolate, with some activity being deferred short-term and after which, we expect to see yet another re-energisation of transaction activity when lockdown restrictions are relaxed.
He commented that current sellers should continue with their property campaign in the case it has already been launched to the market if their personal situation allows.
“The demand from buyers is likely to remain high. People have become comfortable with online buying and there’s certainly an improved online experience for buyers as the industry has already demanded this in 2020.
“Those who were looking to sell in the near future should use this time to prepare and strategise with their agent so that they’re in a position to be first to market when restrictions ease,” he said.
“The industry has adjusted to offering digital solutions and here at Realmark we’re certainly prepared to facilitate property transactions while adhering to all advice provided by the State Government,” said John.
The residential real estate market proved its robustness in 2021. It’s expected the current environment of the second lockdown will prove a similar outcome.
If you’re looking for advice in regards to your unique situation, contact Chris Pham today on 0448 777 511.
The above advice is general in nature and is not intended to constitute professional accounting, financial planning or investment advice. Please speak to your professional advisors to obtain advice specific to your circumstances.
*YoY December 2020 realestate.com.au buyer enquiry data