Perth Property Market Update 2nd Half of 2019
Between 2014-2015, residential projects dominated project development in Perth. In 2017-2018 there has been a move to focus on infrastructure projects, suggesting that the local government recognised the need for improved amenities to attract residents and absorb the additional residential stock created in previous years. A slowdown in commercial project activity after 2014-2015 has slightly improved in 2017-2018, suggesting businesses are recognising the opportunities presented in Perth. There has been a slight increase in mixed-use projects for 2019-2020, suggesting Perth will benefit from increased diversity in its property market.
Between 2014-2015, residential projects dominated project development in Perth. In 2017-2018 there has been a move to focus on infrastructure projects, suggesting that the local government recognised the need for improved amenities to attract residents and absorb the additional residential stock created in previous years. A slowdown in commercial project activity after 2014-2015 has slightly improved in 2017-2018, suggesting businesses are recognising the opportunities presented in Perth. There has been a slight increase in mixed-use projects for 2019-2020, suggesting Perth will benefit from increased diversity in its property market.
From 2013-2018, the Australian Bureau of Statistics (ABS) records Perth Metro having an estimated population growth of approx. 115,000 people; the 4th largest numerical increase for any city in Australia. From 2017-2018 Perth grew by approx. 21,500 people; an annual growth rate of 1.1%. The ABS forecasts Perth to have an increase in its total number of households by just over 38,000 from 2016-2021. Residential projects, which includes dwellings, units and apartments from 2016-2020 currently stands at approx. 35,262, placing the proposed supply pipeline on course to meet the needs of Perth’s forecasted population increase in 2021.
From 2018-2020 the largest proportion of development spending is infrastructure, with 36.0% of total estimated project spending. Commercial activity has retained a similar proportion which indicates a stability in business activity. There has been an increase in residential spending, however at the expense of mixed-use. Looking forward there needs to be a maintenance of infrastructure and commercial projects, to continue stimulate population growth and absorption of new and established property stock.
