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Ronald ChanThe West Australian Numbers provide us a way to assess what is happening around us, benchmarks that allow us to gauge whether things are changing and by how much. I’ve written
before about the currently very interesting and dramatic numbers around property sale listings falling and sales numbers showing very healthy gains of over 70 per cent on the previous month
and the previous year. Domain published statistics on rental vacancies and prices last week. The media had its usual focus on the eastern states, which is not surprising given the large
falls that Sydney, Melbourne and Hobart were experiencing, as well as large increases in rental listings. Perth on the other hand was a standout. Not only were unit rents showing an increase
of 3.2 per cent year-on-year, the vacancy rate remains at a strong 2.2 per cent. In fact, REIWA statistics show the number of overall properties listed for rent has fallen by over 46 per
cent in the last 12 months. You would need to go back to early 2014 or before to find a similar vacancy rate, when the resources construction boom saw demand exceed supply over a number of
years. In a normal market you would expect to see rents increase further if demand consistently stays at this level. The impact of COVID-19 may dampen things for a while, but there are
pre-pandemic forces at work that could well see rents continue to improve and potentially values as well. If demand continues to increase, primarily through strengthening population growth,
then things could definitely further improve for the Perth property market. While the international and internal movement of people may have reduced to a crawl for now, there are potential
changes that may see large increases in population. The incentives offered to interstate FIFO workers by the State Government may see population numbers supported as workers look to protect
their livelihoods by relocating to Perth. The recent Federal Government announcement offering a pathway to permanent residency to those in Hong Kong who wish to leave could see tens of
thousands make the move to Australia. As others in our region look to stable, safe and healthy communities, Perth could be the standout choice for those who want to change countries but do
not wish to change time zone. History offers fascinating ‘what ifs’. Before Israel became the confirmed Jewish state, there were moves to bring 75,000 Jewish refugees to Australia during the
Second World War, to a site in the Kimberley. That would have increased the state population by over 16 per cent in one go. While that never eventuated, Perth’s vibrant multicultural
society in 2020 offers an exciting potential for attracting migrants to start a new life and contribute to our city’s economic growth. While immigration is a federal responsibility, the
State Government’s planning policy initiatives could perhaps be a blueprint for quick, bold initiatives around attracting new sandgropers. As always, there is the old adage that “there is
strength in numbers”. GET THE LATEST NEWS FROM THEWEST.COM.AU IN YOUR INBOX. Sign up for our emails