A growing population could kick start a property market recovery, according to the HIA.
“Population growth has been strengthening in WA and the housing market will not be far behind,” regional executive director Cath Hart said.
The Australian Bureau of Statistics latest population data showed a 0.9 per cent increase in population in 2018 for WA.
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READ NOW“(The) data was great news for WA, showing population growth has continued climbing since mid-2016,” Ms Hart said.
“Population growth bottomed out in the fallout from the mining and resources boom at an annual 0.60 per cent in 2015-16; since then it has trended upwards, reaching 0.93 per cent for the 2018 calendar year.
“This was driven by net overseas migration which was 27.0 per cent higher in 2018 – a net 14,863 new overseas residents compared to 11,702 in 2017.”
Ms Hart said the growth in population should lead to the end of the five-year decline in home prices Perth has experienced.
“Population growth is recovering faster than construction activity,” she said.
“Once these new residents absorb the excess housing capacity that emerged after the mining and resources boom, we are likely to see a swift recovery in house prices.
“This will incentivise new home construction and finally generate the housing market recovery for which the state has waited so long.”