COVID-19’s cancellation of travel plans could fuel demand from first home buyers in Western Australia, according to a chief executive.
Raine & Horne CEO Andrew Brien said that the Perth market is already proving resilient despite the economic impact of COVID-19, with properties selling above expectations.
Moving forward, he expressed that the closure of international borders, along with more affordable entry points and government stimulus, could encourage younger Australians to start their real estate journey earlier.
“COVID has forced many younger Australians to either cancel or postpone the traditional post-university gap year, which means that they are starting in the workforce earlier,” he said.
“With interest rates at all-time lows and plenty of government money available for first-time buyers in Western Australia, the temporary brakes on overseas gap years could also underpin real estate activity in 2021.”
The mining industry’s continuing recovery is also expected to be a boon for the local market, with around 1,000 workers expected to migrate to Western Australia for mining reasons each month of 2021.
Calling it “a major factor in market activity”, the CEO said mining companies are now more receptive to workers living in Western Australia rather than fly-in, fly-out as they did during the last boom.
“These people will need somewhere to live, and this demand will underpin rental and sales markets in Perth and regional cities such as Bunbury,” he said.
“That said, any sanctions by China on iron ore from Western Australia will have a major impact on this outlook.”
[Related: COVID-19 prompts faster loan repayment goals]
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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