Western Australia's residential property faces 'double-digit' growth
Western Australia has been identified as being uniquely positioned in the local residential real estate market by a new industry report.
Australian Property Monitors (APM) said in the State of the Nation report that the combination of three key factors is responsible for the current industry environment.
Lowered consumer confidence over much of 2011 saw the value of dwellings drop quite sharply - with detached housing seeing a 5.7 per cent reduction in median price.
This adjustment was quite mild in comparison with the change experienced by units and apartments, wiping 8.7 per cent off median values.
In turn, this slowdown saw construction rates begin to decline towards the end of the year - meaning that there are less new projects due for completion.
However, with the new funds flowing from resource projects in WA bringing with it a boom in population levels, there is a sudden renewal of interest in residential properties.
Because of the already low prices and the comparative lack in new housing, this means that the market possesses all the conditions needed to increase competition.
According to the report, this "flood of workers" has the potential to drive house prices up "by a double-digit percentage" by the end of 2012.