Perth is showing early signs of recovery from the impacts of the COVID-19 outbreak, according to the Real Estate Institute of Western Australia (REIWA).
Sales activity in Perth averaged 2,900 transactions per month at the start of the year. While activity dipped at the onset of the COVID-19 outbreak, sales have risen significantly in recent months, reaching nearly 4,200 average monthly transactions.
Listings for sale, on the other hand, have reached a 13-year low with just over 10,000 listings for sale on Reiwa.com.
Damian Collins, president of REIWA, said the year so far has been unusual for the market but despite the lull during the start of the COVID-19 outbreak, Perth is showing "extremely positive" signs.
"With record low interest rates looking like they will be around for a while, many buyers are finding it cheaper to buy than rent. This is one of the reasons why we can expect sales activity in 2021 to continue gaining momentum," he said.
Collins said agents on the ground have reported that it is not uncommon for sellers to receive multiple offers, some of which go thousands over the advertised price. This increase in interest could potentially boost prices in Perth next year.
"In 2020, Perth was the lowest median house value of any capital city in Australia and with the increase in population growth due to people returning to WA from overseas and interstate, this could change in 2021," he said. "It is expected that prices will increase between 6% and 10% over the next 12 months."
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