The Australian real estate is set to explode after Prime Minister Scott Morrison announced that the country’s tough borders will finally open later this month.
Travelers will be welcomed back to Australia from February 21 for the first time in nearly two years provided they are fully vaccinated – ending one of the world’s longest-running lockdowns.
William Porteous International Properties sales manager John Hunter said dozens of buyers have contacted them in the lead-up to the reopening of borders.
We get a lot of the buyers looking to move in some of them are comfortable doing FaceTime inspections, but there are a lot of others who aren’t comfortable and want to see real estate in person, so they make appointments, Mr. Hunter said. There’s a lot of coronavirus here, and they haven’t closed down.”
The second wind for WA properties could come as buyers look to find a new home in a new state, or return to be closer to family and friends, said Nicholas Powell, head of research and economics.
After the families have been separated for so long, we will see a flaw in people in their original pathway — their original state, Dr. Powell said. We will definitely see the influx of people in and out of the state. But there will be more people coming and that will encourage a second batch of activity.
Legions of buyers and renters looking for a sea or tree change have already made the move from Sydney and Melbourne to regional locations within their states or to Queensland and South Australia.
As a result, the median home price in Brisbane jumped 15.4 percent in the year to September to $702,455, domain data showed, while the price of an Adelaide home rose 20.1 percent to a median of $667,888.
And while there were tight border controls in Western Australia, prices continued to rise across the state, particularly in the iron ore and mining towns of Pilbara.
The Strict border controls have helped boost property prices and rents in Washington State,” said Dr. Powell. “Even the FIFOs and those who wanted to move between states found them having to stay longer than they planned.
Domain data in September showed home prices in Perth jumped 9.8 percent over the year to an average of $598,601, just below the record price set in 2014. Unit prices rose a more modest 1.3 percent to $363,653.
The biggest jumps in home prices were in areas near the iron ore mining towns of Pilbara, including Port Hedland, which saw prices rise 42 percent to an average of $546,595 in September. Similarly, the South Hedland saw home prices rise 34 percent to a median of $335,000.
While property prices have surged, rents have also soared to record levels, with a recent Domain Rental report showing that home rents in Perth were at their highest since 2014, jumping 10.8 per cent to $460 per week. Unit rents also hit their highest level since 2015, up 11.4 percent to $390 a week.