Two years on from COVID – how has the Perth sales market changed?
- Posted By Biljana Trifunoska
Since the onset of the COVID-19 pandemic in March 2020, Perth home values have increased 21.6 per cent, sales activity is up 56 per cent and the median time to sell has dropped from 43 days to just 14 days.
REIWA President Damian Collins said the pandemic had impacted many facets of our society, including the Perth property market, which had experienced a remarkable turnaround over the last two years.
“There was uncertainty about what impact COVID-19 would have on the property market when the pandemic hit in March 2020. REIWA expected some impact, however given the strong economy and the recovering property market, we expected a short-term downturn. At the time, some commentators and financial institutions were predicting 20 per cent price declines.
“Thankfully, the downturn was short lived and only small. After we came out of the first lockdown and restrictions eased, many people looked to take advantage of WA’s affordable housing and low interest rates. The Perth residential sales market was reinvigorated, and we haven’t looked back,” Mr Collins said.
Perth housing shortage
Listings for sale is another key metric that has changed significantly since March 2020. reiwa.com data shows there were just 7,796 properties for sale in Perth at the end of March 2022 compared to 12,295 at the end of March 2020 – a 37 per cent decline.
“The pandemic has seen a return to net interstate migration into WA, which has certainly exacerbated Perth’s housing shortage, with far fewer properties available for sale than there was this time two years ago. With the borders now open, we are hopeful more skilled workers will be attracted to the state to help complete construction and create new housing,” Mr Collins said.
“After years of watching properties lose value and sales dwindle, the last two years have seen market conditions strengthen in Perth, with increased buyer demand and low listing stock fuelling strong price growth.
“We don’t anticipate market conditions slowing any time soon, with a further 10 per cent price growth expected in the 2022 calendar year.”
For more information about how the Perth market performed in March 2022, read our media release.