Perth's property market is poised to maintain its upswing, with interstate migration one of the biggest drivers of demand.
Data from Bankwest Economics Centre showed 45,000 advertised job vacancies in the state as of the end of May 2021, the highest across Australia.
These jobs are from a wide range of industries. The mining and construction sectors, for instance, reported skills shortages in key roles as the number of projects increase in recent months.
Momentum Wealth general manager Jennifer Wakeman said the need to fill Western Australia's high number of job vacancies is putting pressure on shrinking supply of homes.
“Limits on cross-border movement mean it’s currently challenging to recruit interstate, but as borders open up there will be more interstate migration from skilled tradespeople and professional workers to fill roles,” Ms Wakeman said.
“This in turn will increase demand for housing, tightening stock further and pushing up prices.”
Home supply continues to shrink
Perth's shrinking home supply continues to be a major factor in keeping the city's momentum.
In fact, Perth's total listings fell by 22% in August. Compared to last year, listings were down by 40.7%
"A drop in the total number of listings for sale, widespread skills shortages and interstate migration are all favouring market growth, with no sign that the current growth phase has run its course," Ms Wakeman said.
"We are likely to see a continued tightening of supply in Perth’s residential market for some time yet."
Despite the traditional slowdown in sales activity during the winter season, Perth was able to report robust price gains quarterly on an annual basis during the period.
According to the Real Estate Institute of Western Australia (REIWA), 104 suburbs recorded annual price growth in the period while 223 suburbs posted gains compared to the previous season.
Encouraging interstate buyers
Over the first quarter of the year, the state returned a robust positive net interstate migration figure of 1,639, according to the Australian Bureau of Statistics.
REIWA recently launched a campaign to capitalise on the growing demand from interstate buyers.
REIWA CEO Neville Pozzi said the "Thinking of buying? Look West" campaign will also encourage local would-be buyers to participate in the market.
"With our local property market firmly in a recovery phase after a long and sustained downturn, West Australians are excited about property again and looking local," he said.
"We are seeing immense competition in the market, with strong turnouts at home opens, widespread price growth and elevated sales numbers for the first time in more than five years."
Ms Wakeman shared similar insights, adding that investors are also facing stiff competition in the market.
“On the ground, our buyer’s agents are reporting low sales stock, resulting in high levels of buyer competition for high-quality properties in investment-grade suburbs,” she said.
“Purchasers are often having to stand out against multiple offers from other interested parties, with some properties going under offer immediately after, or even before, the first home open.”