Perth house prices are on track to rise faster than any other Australian capital city in 2021, thanks to a strong economy, a tight rental market and the state’s response to COVID-19, according to property experts. 

House price growth of 6-10% is likely this year, according to the Real Estate Institute of WA president Damian Collins, who added that he expects 2021 to be the best year for property prices in Perth for about seven years. 

Collins said: “We have an undersupply of properties on the market and the oversupply of what we had in the last year has been taken up and demand is certainly outstripping supply. We are certainly very affordable. Our income is higher than other locations, interest rates are low and the WA economy is strong, particularly our mining sector, which drives a lot of things.” 

Economists also expect strong growth, with ANZ tipping a 12% rise in Perth housing prices this year, compared to 8.8% in Sydney, 9.5% in Brisbane and 7.8% in Melbourne.

Fairly significant net migration, both international and national, as a result of COVID-19, was also set to drive property price growth in Perth, which is the most isolated major city in the world, 1,300 miles from its nearest city with a population of more than 100,000 (Adelaide).