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Western Australia is set to be a prime market for investors with as its downturn looks to be at an end, a local expert explains.
Gemmill Homes managing director Craig Gemmill said that the change is happening quickly.
“Yesterday we were all saying it was all doom and gloom, but vacancy rates have dropped considerably in just a year,” the managing director said.
“When people were leaving the state, it became a tenant’s market due to the number of properties that were available. Now, we’re seeing things going back more in favour of the landlord, so it is a great time for investors.”
He said that the rebound is underpinned by a significant rise in the state’s population.
“After a 60,000 drop in 2015, the annual population growth is rising again, with repeated climbs in recent years,” Mr Gemmill said.
“CBRE figures show Western Australia enjoyed a 21,000-person net increase alone in the past 12 months. Population of the Peel region in 2010 was approximately 1.65 million. That is expected to exceed 2.2 million residents by 2031.”and
Mr Gemmill said that it is a positive step forward.
“It’s a marked change from the doom and gloom that has existed for the past few years,” the managing director said.
“It’s really exciting, as there’s two real positives that come out of the population growth. Existing housing stock get soaked up. That affects supply and people then go to the next level of pricing or they build. It will really stimulate the market. Another significant factor in the brighter outlook for the state is a sharp decline in vacancy rates.”
Mr Gemmill added that vacancy rates have dropped considerably, after topping out at 7.3 per cent in July last year.
“Stabilisation has been followed by four consecutive quarterly falls, and REIWA figures show the vacancy rate has dipped to 3.9 per cent, a level last seen in 2015,” the managing director said.
A population is a group of individuals who are inhabitants of a particular location, region or country.
A vacancy is a term that describes an unoccupied or empty space.