Who would have believed that 12 months ago we would have experienced the rollercoaster ride we have experienced throughout 2020???
I would suggest over the last couple of decades, the fallout from the Covid pandemic has had the greatest reaching ramifications, far greater than the tragic September 11 attacks or the Global Financial Crisis.
Here in WA, we have come out as clear winners.
- From soaring Iron Ore prices and profits.
- To plummeting historically low rental vacancy rates.
- Rapidly increasing rental returns creating the first inverse yield for over 40 years.
- The lack of supply being stretched by the influx of demand as 30,000 expats scramble to return to our safe state.
- Ironically, business in most areas and sectors is traveling along very well, especially business and industries that have been quick to adapt. like distilleries now producing hand sanitizer to yoga classes going live online and so much more. Covid has been forever life changing in so many ways touching all corners of the globe.
- The building industry along with the Iron Ore giants have been standout winners. A year ago the building industry was on its knees and now it’s been a rapid turnaround to potential boom time, brought about by the timely bonuses and grants.
As our market has not enjoyed the best growth for nearly a decade and based on the fact that our prices are half of Sydney and our affordability is nearly double – 5.2 for Perth, yet a staggering 9 for Sydney.
There are so many reason to suggest that the year 2020 has created a brilliant foundation to spring off to an accelerated growth of values and rent in 2021 and beyond.
Another great aspect has been how the pandemic seems to have also been an overdue leveler for humanity, as the pandemic seems to have bought families together and rekindle a kinder community spirit.
Here’s my take on 2020.