Housing estate could be key to housing shortage
From its 10-month high of 1.2% in June to 0.9% in September and October, Perth’s vacancy rate is causing house prices to rise and additional stress for tenants, but is there a short term fix or are we playing the wait game?
Marron Real Estate Director and Licensee Rhett Marron said the solution was not easy because there was no quick fix.
âSupply levels are low,â he said. âDemand far exceeds current supply levels, to the point that it appears that many properties are doing off-market transactions and not even getting to the point where they are advertised.
“It’s funny because the prices are the best they’ve been in a while, so you’d think that would encourage sellers to sell, but I think the problem is it’s too hard to find another one. place to go. “
Mr Marron said developing new and larger estates was key to increasing supply levels, but delays in construction and materials had added more logistical headaches.
Instead, he pointed out that faster subdivision on properties was potentially the quickest solution to vacating homes.
“Encouraging subdivision in areas where there are much larger blocks would help people to settle in established areas at cheap prices, while benefiting from the transport facilities that already exist,” he said. declared.
âFor existing suburbs, changing the zoning is quite a tedious process as there are usually a lot of people in the local government areas with different opinions.
“It is subject to public consultation, as well as to many government groups such as the Environmental Protection Authority and other agencies to ensure that what they are doing is acceptable.”
Mack Hall Real Estate licensed real estate agent Marcus Sproule said he saw no short-term solutions outside of what was already being done, but highlighted some of the measures already in place to speed up subdivisions.
âThe state government’s COVID-19 emergency powers have already accelerated many developments across the metropolitan area.
“The granting of exemptions to subdivide occurs, with the Western Australian Planning Commission approving subdivisions even without the support of the local council,” he said.
âVacancy rates are as low as I have witnessed in my 18 years of selling in Cottesloe and surrounding areas.
âIn the areas in which I work, it is not as bad as it seems.
âMost of my clients find accommodations, although they can’t be picky and their requests are one of many for every rental we have. “
Mr Marron expects the housing supply to be even more stressed once the OA borders open, predicting a rise in interest rates in response.
âLooking at London, when its borders opened, the demand increased even more, and I suspect it will be like this for WA because we are relatively spared from COVID-19 compared to the rest of the world,â he said. -he declares.
âThe demand for properties in Perth will be high and I think the government will want to encourage foreign investment to help repay the money they have had to pump into the economy to cover COVID-19.
âI think the problem is going to get worse – the only thing I see that will stop it is the high interest rates that could rise over the next 12 to 18 months.
âIf so, it would certainly slow down the demand for properties but probably not solve the out-of-stock problem.
Mr Marron said any solution to a lack of supply would take time unless the process had already started long before, with Mr Sproule identifying developments along the Stirling Highway in Nedlands, Dalkeith and Cottesloe as being providing high density properties in the near future.