As Western Australia experiences its fastest population growth since 2009, housing demand intensifies, putting pressure on the state's real estate market, according to REIWA.
WA’s population surged by 3.3% to reach 2.905 million in the year leading up to September 2023, marking the highest rate of growth since 2009, according to ABS. This growth translates to approximately 93,591 people or about 37,000 households.
“WA’s population remains the fastest growing in the country, and there are little signs of this easing with the government adjusting its forecasts upwards,” REIWA CEO Cath Hart (pictured above) said.
This significant population increase, according to Hart, is set to keep the pressure on WA’s sales and rental markets. She predicted a continued rise in house prices and rents, with homes selling and leasing rapidly, and the rental vacancy rate staying low.
This comes alongside the latest unemployment figures, which show a decrease to 3.6% in February from 4.3% in January, which Hart said highlights the state’s strong economic fundamentals.
The growing population is also putting pressure on WA’s building industry. Despite an increase in completions in the third quarter of last year, the rate of new dwellings is not keeping pace with the demand.
“In the year to September 2023, there were nearly 17,000 completions of private and public dwellings, now compare that to the 37,000 new households in WA in the same timeframe. That’s a shortfall of about 20,000 new homes,” Hart said.
With the state government revising its population growth forecast to 2.4% for 2023-24, up from 1.7%, Hart believes that the actual growth could surpass these expectations.
This outlook suggested that demand for housing will continue to be strong, further straining WA's sales and rental markets.
“WA is an appealing destination because of its buoyant labour market and strong wages and also because it is among one the most affordable places for housing in Australia,” Hart said.
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