WA is the only market to experience growth in house price expectations as confidence in the property industry remains stable, according to the latest ANZ/Property Council survey.
The survey for the September quarter 2022 found WA’s house capital growth expectations rose from -1.1 index points to 5.1 index points, making WA the only state to sit above zero. A score of 0 in the House Capital Growth Expectations Index is considered neutral.
Property Council WA Executive Director, Sandra Brewer said the data points towards Perth continuing to perform countercyclically as east coast markets begin to see house prices decline.
“We have seen an increase in demand in residential property, but supply constraints have limited the ability of industry to bring new projects to market, with limited supply and added demand pushing house prices up,” Ms Brewer said.
Survey respondents shared concerns about supply pressures, with 38 per cent of Western Australian respondents scoring housing supply and affordability as the most critical issue for state government.
“The opportunity now is for state government to address supply challenges by continuing to streamline planning processes to support expedited housing supply – an effort which is well underway with Phase 2 planning reforms announced last week,” Ms Brewer said.
Overall confidence levels for WA remains above the historical average of 123 index points, sitting at 131, the second highest confidence level nationally. A score of 100 in the Confidence Index is considered neutral.
“It is pleasing to see confidence hold in the WA market, as positivity means strong demand for housing and employment will be sustained for some time,” Ms Brewer continued.
“Market optimism coupled with strong forward work schedule expectations has the potential to boost WA’s profile and make the state a beacon for talent attraction.
“Ensuring a healthy pipeline of new homes will help maintain Perth’s enviable housing affordability and will attract new talent to the state.
“The Property Council will continue to work with the state government to identify opportunities to remove red tape in the planning system and ensure the rapid delivery of high-quality homes to support the needs of our growing population,” Ms Brewer concluded.