WA is primmed for growth with the Australian Government announcing they will be opening visas for up to 200,000 migrants when borders are fully opened which will assist in economic recovery post-pandemic. The government is focusing on bringing in skilled individuals, as well as students and refugees. Evidence is showing when the borders begin to open, the housing market will be in high demand and with plenty of jobs available, Western Australia (WA) is looking to be an attractive state for immigrants to settle. These immigrants will need somewhere to live and with our current low supply, housing demand is only going to increase proving now is a great time to develop.
It is common knowledge that tradespeople are in high demand. Skilled labourers from a number of different industries are in dire need; as mentioned in our previous blog explaining some of the reasoning behind the low supply of tradies in particular in the construction industry. If you were to do a job search on SEEK, you will notice over 1,000 jobs available for Diesel Fitters with multiple sign-on bonuses. On top of that, some employers are offering their staff bonuses just to bring in skilled labourers. This particular job search is a good indicator of the Western Australian job market and shows there is plenty of work out there for tradespeople in both the construction and mining industries. Great news for the 200,000 migrants Australia should soon be expecting. WA will be an attractive prospect for those skilled migrants with our high demand for labourers which will, in turn, add further stress on housing and rental demand. This could work in favour of the sale of your future development.
Most immigrants rent in the first few years.
This is just what property investors want to hear. The current high rental prices and low availability is already working in their favour and the prospect of that demand increasing is a great incentive to purchase their next rental property such as a unit from your future development. In addition, they almost have a guarantee they will find tenants and receive a decent rental income. If you are sitting on a block big enough for multi-units especially if you are close to a university or public transport you should expect a lot of interest, come sale time. Incoming foreign students will be on the lookout for rentals close to their place of study which makes multi-unit dwellings an attractive investment purchase.
Immigrants are likely to buy within a few years of moving.
If you have developed before you are likely aware of the time it takes to submit building applications, plans and gain council approval for your development and with the current building delays, your next project could take longer than expected. Therefore, leave yourself with plenty of time to get your development completed. Start looking for land and securing a block for your next project now so you can be prepared and have homes built and ready to go when these immigrants are looking to buy.
“With borders opening in 2022, a significant pick-up in immigration will fuel further demand, right at the time when supply is struggling to keep up due to the labour shortages in the building industry.”
– Damien Collins – Head of Real Estate Institute of WA (REIWA)
Don’t wait for building prices to go down. Strong evidence suggests demand should start to pick up mid-end of next year if borders in WA open which could cause increases in housing prices. This is why now is a good time to get a move along on your development before the influx of immigrants hits our state. Help fill the current supply gap in the housing market by getting your development ready to go.
Starting a development is easier said than done. It takes time to get things moving, to find land, submit applications, get council approval, which is why getting the ball rolling sooner rather than later will put you in a better position for the near future. Contact us to help you get started on your project.
We can help you with your search for land, building plans, council submissions, EVERYTHING from start to finish. If you are still not sold on the clear evidence provided, in addition, we will do a feasibility study for your prospective project to give you a good indication of the returns you should expect.
Send Jubilee Homes Director Joe Snare a message today:
(08) 9571 3512