19. October 2011 18:29
Despite of the Property prices dropping recently the figure sales volume has increased 1% in September which is good inflow for property market. A new report reveals WA’s property recession has caused a spike in the number of homes falling onto negative equity with about one in 20 now worth less than their purchase price. The RP Data annual equity Report shows, Perth has the second highest number of homes with negative equity (4.9%) all over Australia and is home to five of the 10 regions with the highest rates in the country.
However, based on the official Landgate figures, Perth Property market recorded its first positive sign that things were moving up in August with 28% increase in sales compared to the month before. Even though Perth has negative equity but still it is a good sign for the Perth property market because there is still plenty of equity out there. This is a reminder to invest for a long term because in the long run with negative equity will fade out as the market improves.
18. October 2011 18:06
WA rental also increased the most in the nation but based by RP Data. Perth was also the best performer in the June with 2.6% in the median rental price. According to RP Data Senior Research Analyst Cameron Kusher, “He was anticipating stronger levels of rental growth in the short-term and with sales volumes depressed and first-home buyers inactive, there was likely to be an increased competition for rental stock in the near future.” “This activity may be beneficial to investors who could see a boost in rental rates as vacancies tighten and fewer dwelling continues to commence construction,” he added. The prospects for strong growth in rents are much more limited and tourism market remains dilapidated for limited significant competition for rental stock.
Perth rental prices have increased by $15 per week, 6% of people signing rental agreement had increased, and the median rent in Perth is $400 per week. The house sales in Perth rising by 1% for the September quarter and sales of units, apartments, villas and townhouses falling by 1%. “According to Western Australian Council of Social Services Chief Irina Cattalini, “We are down to less than 3% of available housing, which is less than 3000 properties in the market.” The rental activity has concerned the already-sluggish housing market and few of those properties are available for people on low income so it also puts pressure on and increased demand for social housing and affordable housing across WA. According to REIWA’s latest report properties available for lease in Perth have fallen by 20%, from 3,600 at the end of June to 2,800 at the end of September. Minister for Housing Troy Buswell announced an additional 2,300 houses to be built across WA under the National Rental Affordability Scheme.
14. October 2011 20:09
Most Australia Capital City Property markets decreased in the past months. Perth was the weakest housing market with negative growth recorded in all time periods however a change is expected soon. According to the QBE, Leaders’ Mortgage Insurance housing outlook report researched by BIS Shrapnel, “Price growth of 20% forecast for Perth and price growth of 19.4% is forecast for Sydney by 2014. Property prices are set to grow over the next few years, as consumer confidence rises in tune with a growing demand from Asia for Australian resources, QMI added.
This report also predicts that residential property investment is set to increased and rise up after all the crisis we are facing now and dissatisfy this past years. Due to the growth of mining and resources, Perth and Sydney are set to record the largest growth over the next few years. Because of the substantial investment in the resources and the mining sectors, many are expected that it will lead to accelerating economic growth, to have greater employment and income growth. Despite the unstable economy, but still investors, businessmen, lenders, banks are very optimistic about the outlook of housing property market and economic growth.
The QMI report states that despite the current weak economic environment, delaying the recovery in first home buying, the outlook is positive with the group confident prices have reached their bottom.
6. October 2011 19:15
Despite the Interest Rates Stability at 4.75% and some negative equity in houses, is there still a chance of an Australian Property crash? There is no doubt residential real estate prices are on the slide even if the economy falls and unemployment rises, they will continued to lower but still it doesn’t count on a crash.
Real Estate Institute of Western Australia (REIWA) figures shows residential property prices fall between 11-15% in the inner suburbs of East, West Perth and Northbridge in the year. Westpac Senior Economist Matthew Hassan said the high prices achieved during the first mining boom in WA had priced many people out of the market. “Since then, Perth’s really struggled to gain any traction in terms of price performance and a common theme of slowing property prices was elevated interest rates, “Mr. Hassan said.
Investors, businesswomen, we still believe and expected a full recovery of the housing market in WA next year, also we are expecting also that the interest rate cut would be the key to establishing house prices. In addition, we are balancing rental income in return for capital gains in the future.