Get set for 2022 - Perth house prices will rise a further 10 per cent in 202

Perth house prices will rise a further 10 per cent in 2022, according to REIWA’s latest figures, which show Western Australia’s strong property market is set to continue.

 The prediction comes off the back of a strong 2021 that saw Perth’s property prices rise by 14 per cent.

REIWA President Damian Collins said despite the strong price growth recorded in 2021, WA was still the most affordable state in the country for housing, with prices in most regions across the state yet to catch up to their 2014-15 peaks.

Perth sales market

Sales activity was strong in Perth, with the average weekly reported sales figure in 2021 sitting at 865 – up from 680 in 2020.

“And since the spring selling season kicked off, weekly reported sales on reiwa.com have routinely been above 1000 per week, which demonstrates that the demand for housing in Perth is still very strong,” Mr Collins said.

“We anticipate sales volumes to hold at current healthy levels in 2022, which will put upward pressure on house prices over the next 12 months.”

Listings for sale should increase modestly in 2022 as sellers seek to capitalise on strong price growth, however they will remain below historic averages, Mr Collins said.

“Current listing levels are 11 per cent lower than they were this time last year and almost 50 per cent lower than what they were three years ago,” he explained.

“The increase in new listings to market next year should be offset by the resumption of migration once interstate and international borders open.

“As more people arrive in WA, this will add to the demand for housing and keep listings below historical averages.”

The outlook for 2022 is positive, however interest rate increases loom as a possible deterrent.

“Interest rate rises have the potential to slow the market in 2022,” Mr Collins said.

“Whilst most people are aware that interest rate rises will occur at some stage, if there are multiple interest rate rises too close together, this could reduce market activity and slow projected growth.

“It would be unlikely to derail the market entirely though. WA has some of the most affordable housing in the country and one of the strongest economies in the world.

“We also have very low ‘for sale’ and ‘for rent’ stock. All of these factors point to another strong year of growth.”

Paulette Contessi

Licensee / Director

THE CONTESSI GROUP