Perth, Western Australia

Wages for certain mining jobs have increased beyond boom-time levels amid a four-way squeeze on skills. An east coast infrastructure boom, stricter rules on foreign labour and low enrolments in university mining courses have coincided with a resurgence in mining investment, putting pressure on big miners to increase wages. FMG, Rio, BHP and Woodside have projects either underway or committed to commence in 2020 that will employ in excess of 15,000 people during construction and several thousand once they reach operational status. This has no doubt contributed to the drop in the seasonally adjusted unemployment rate in WA drop by 0.5% to 5.8% in June.

Greenfield land sales in Perth averaged 389 gross sales per month during Q2 2019 – an increase of 18% from the prior quarter.  The median lot price in Perth’s growth corridors is relatively stable at $219,000 (up 0.5% from Q1 2019).  The top gross selling estates in Perth were:

  1. Calleya, Treeby – 16 sales/month
  2. Banksia Grove – 15 sales/month
  3. Vale, Aveley – 12 sales/month
  4. Ellenbrook – 12 sales/month

(Source: Research4)

The established Perth residential market has seen a reduction in supply with the number of properties on the market at 14,812 down from 15,963 at the same time in 2018, a reduction of 7.2%. Weekly sales of 589 properties is also a significant improvement on 563 in the previous week and well up on the 496 the same time in 2018. This represents an increase in weekly sales of 18.75%. Lot sales data in the UDIA graph below shows a continued slight upward trend from the middle of April.

The rental vacancy rate remains at 2.6% and the median rent is steady at $360 per week. This has increased from $350 per week in June 2018. There are currently 7,324 properties available for rent, compared to 8,715 vacant properties at the same time in 2018. (Source: UDIA/REIWA)

The Western Australian population grew by 24,000 in 2018, which is an increase of 0.9%. Employment grew by 10,100 or 0.75% for the 12 months to May 2019. Western Australia’s seasonally adjusted unemployment rate fell by 0.5% to 5.8% in June. This was the only decrease in the seasonally adjusted unemployment rate nationally, with New South Wales recording no change. Western Australian seasonally adjusted unemployment has fallen from 6.5% in April 2018. (Source: ABS)

1 Important disclaimers.