Cancelled gap years could trigger first home buyer frenzy
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 more 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 considered.
“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,” Mr Brien said.
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 expressed.
“That said, any sanctions by China on iron ore from Western Australia will have a major impact on this outlook.”
More from this writer:
-
Why it’s still worth selling – even in lockdown
-
Over 200 Perth suburbs see winter price growth
-
Auction volumes on their way back up
-
Low interest rates drive record refinancing
-
Tassie’s own $20k HomeBuilder grant finds early success
-
Capital cities see stronger auction success
-
2020 vs 2021: How lockdowns have impacted the market