After a bullish 2021, house prices and rents in Perth are expected to skyrocket again in 2022.

According to REIWA, house prices in Perth will rise another 10 percent next year, after growing 14 percent last year.

REIWA President Damian Collins said the market is recovering strongly.

“Despite the strong price growth recorded in 2021, WA is still the most affordable state in the country for housing, with prices in most parts of the state yet to catch up to their 2014-15 peaks.” , said Collins.

If the forecast is correct, that means the median home price in the metro area will drop from $ 520,000 to $ 575,000 by the end of 2022.

The outlook for 2022 is positive, but interest rate hikes are emerging as a possible deterrent.

“Interest rate hikes have the potential to slow the market down in 2022. While most people are aware that interest rate hikes will occur at some point, if there are multiple rate hikes. Of interest too close together, it could reduce market activity and slow projected growth, “Collins said.

“However, it would be unlikely that the market would completely derail the market. WA has some of the most affordable housing in the country and one of the strongest economies in the world. We also have a very low “for sale” and “for rent” inventory. All of these factors point to another year of strong growth.

It is also estimated that median rental prices will increase between 10% and 15% in 2022, which will attract investors.

“Demand from tenants will remain high in 2022, which will see rents continue to rise. Despite this, the Perth rental market remains very affordable, with tenants in WA enjoying the cheapest rental market conditions in the country, ”said Collins.

Market conditions in the WA region are expected to remain strong in 2022, with lifestyle expected to be a key growth driver.

“Port Hedland was the top performing regional hub in 2021 for price growth, largely fueled by the resurgence of the mining industry,” Collins said.

“In 2022, we predict that lifestyle will be a determining factor in how people choose to live, especially if there are local employment opportunities in regional areas.

“We have some of the most affordable housing in the country, especially in our regional cities. They offer enviable lifestyle opportunities and are likely to attract strong demand from buyers as WA’s population begins to grow again.