Poll finds optimism about Perth property prices and record support for METRONET
Research conducted by the Property Council WA reveals a major shift in optimism on Perth property price values during 2020. A poll of 972 people conducted in December has found that people are far more likely to agree that we will see prices rising this year, a notable change from the ambivalence expressed in the same poll a year ago.
When asked whether they thought ‘Property prices in general are likely to rise in 2020,’ a total of 65% of respondents agreed. This represents a significant shift from the equivalent poll for 2019, where only 50% of respondents agreed.
Closer to home, respondents were asked if they thought their own house price would increase in 2020. The poll found an eight per cent increase in support to 58% for the statement ‘I believe the value of my own home will increase in 2020’, up from 50% in 2019.
Optimism has increased across all age groups, but people over 55 were the most positive with 62% of those holding an opinion believing the value of their home would increase this year. This is in stark contrast to last year’s poll where a strong majority of people aged over 55 believed their home price would decrease over the following 12 months.
This year’s poll included a new question to determine people’s intention to move house in the next 3 years. One in four people overall expressed an intention to move, strongly agreeing with the statement ‘I intend to move house in the next 3 years’. Responses among people aged 18-34 indicated 60% agreed they were likely to move. Those over 55 largely reported an intention to stay put, with 3 in 4 disagreeing they would move in the next 3 years.
‘These results are encouraging news for the local property market and the WA economy more broadly,’ Property Council WA Executive Director Sandra Brewer said.
‘The turn around in property price sentiment indicates West Australians believe the worst of the downturn is behind us and now they can start to plan for the future with more certainty,’ Ms Brewer added.
Support for the State Government’s METRONET program grew to new highs in the recent poll with 94% agreeing that, ‘METRONET (new railway lines and stations) will be good for Perth’. Nearly two-thirds of people strongly agreed with this statement, with 65% of all people indicating they strongly agreed, up 7 points from 58% last year.
‘METRONET continues to enjoy very high support within the community and with an election due next year, we look forward to hearing how the government intends to expand METRONET beyond its existing plans,’ Ms Brewer continued.
Young people were keen to see government policy that will enable them to access suitable housing, expressing 53% agreement that the State Government should do more to support the property market. The majority of people were uncertain with 21% ambivalent about support measures and 8% saying they don’t know. Overall, one in four people agreed the State Government should do more to support the recovering residential property market.
‘We have seen some positive moves in this space by the government, especially with the expansion of Keystart, major social housing investments and the off-the-plan apartment stamp duty rebate,’ Ms Brewer commented.
‘Housing affordability remains the number one advocacy priority for the Property Council in WA and we will continue to engage with the State Government to look at how this can best be achieved,’ concluded Ms Brewer.
The research was conducted online by Thinkfield Research during mid December 2019.