15. April 2015 18:09
More than any other cities, house prices in Perth have fallen by 0.2% in the March quarter. The median price is Perth fell and the rental vacancy rate has returned to 4%. The fall came because of the low interest rate.
According to new data from the Real Estate Institute Western Australia (REIWA), “Perth housing sales dropped in March quarter while the median house price dipped slightly.”
Lower Interest rates were failing to drive up values. It stimulates the housing market and quells any additional market exuberance. The market was much quieter last March which supposedly expected to boom because it is summer period. The rental properties continued to grow for we have many vacant properties at the moment. Despite the cut in mortgage interest rates, house values across Perth fell through February. REIWA anticipates the rest of 2015 will continue the growth of house price and median prices remain steady.
30. March 2015 18:38
Based on the figures from Australian Bureau of Statistics (ABS), House prices rose by 6.8% in Australia’s eight major cities in 2014 (3.34% inflation adjusted), after a rise of 9.48% during 2013 (6.47%) inflation-adjusted).
For buyers and investors, it is bad news for them because property prices will continue to rise 2015. Even Sydney, the outperforming state still down because of the property shortages. Is Australia’s housing market severely overvalued? Property prices in Australia are rising but it doesn’t mean overvalued because there are some cities have affordable and reasonable house prices. Home buyers are still looking for an upgrade and making sure the constant housing price growth. Interest rate really affects and influence home buyers and it is showing a climb in property competition. There are so many factors affect the house prices. Some cities dragging the underperforming economy that makes the house prices continue to rise.
According to HIA Senior Economist Shane Grant, “Overall the trend across the capital cities is one of continued improvement in affordability, with the capital city index increasingly by 2.0% in March 2013 quarter. However the cities of Adelaide, Perth and Hobart each saw declines in affordability.”
11. March 2015 01:18
The Reserve Bank of Australia risks inflating the housing bubble if it cut rates this week, a leading economist says, as new figures show house prices got off to a flying start on 2015.
Further interest rate cuts risk making property even less affordable and it would dangerously imbalance the economy. The price growth is unsustainable and no benefits for the economy. The Australia’s two biggest cities (Sydney & Melbourne) have frothy market.
According to Corelogic RP Data head of Research Tim Lawless, “Lower interest rates could potentially add further fuel to the housing market, particularly the investor segment which continues to remain strong based on recent data.”
The Interest rate remains in 2.5%. We need to be carefully watching for the interest rate to further stimulate the housing market. Interest rate should be on hold for the appreciable gain for the whole economy. When the interest rate will rise again, it develops into a housing bubble and the entire economy will be busted.
19. February 2015 23:04
National Australia Bank released the Commercial Property Survey last February 11, 2015. It shows the overall, sentiment now strongest in retail sector and weakest for office property.
Over the past years, construction has been strong with major office precincts especially in Perth. Australian office markets have been attracting international investment for the past years but nowadays, office property is the weakest. Sentiment in Commercial Property markets softened with dipping into negative territory.
Despite the sentiment is still at record lows in some states, Australian property market has remained strong through tough economic conditions.
According to NAB Group Chief Economics Alan Oster, “There was an increase in the number of developers looking residential and retail opportunities, with more also looking to acquire new properties for development.”
Commercial Property Survey Market Overview (Dec 2014).pdf (138.46 kb)
6. February 2015 23:01
Australian market is among the most expensive in the world. Australia is at the fore flat of slowing growth in housing sector. Many are expected that house prices will slump this 2015. The market shows cooling prices and affordability is likely to worsen. Will Perth market remains flat or continues to struggle?
According to REIWA President David Airey, “He did not expect the situation to change any time soon. This slowdown is likely to continue for some months yet; there really is no end in sight.”
The figures show that we have more vacancies and listed properties. It is expected to double the increase of vacancy rate within next 2 years. House prices rapidly affordability and expected to flat line in 2015. Mining boom slowly diminished which prospective buyer tapers off. House prices will continue to grow due to income growth which attracts renter to rent. By this data, housing market predicted to slow further in 2015.
24. January 2015 23:29
Based on the National Australia Bank, Residential Property falls as house price soften and rent weakens. The survey was released last Wednesday, January 21, 2015. The survey shows that there will be a slow price growth. For the past 2 years, Australia-wide property confidence had recorded high levels. But due to, slowing population growth and some industries are weaker, the survey found that the confidence getting slow. Despite the lower confidence, these are signs of confidence like a strong performance in market activity. There are negative results based on the survey because some states weaken especially the rent. The survey shows house prices rising fastest in Brisbane (6.4%) and Perth (5.6%). If there will continue for the coming months, residential housing market may continue to sluggish. However, this perception will change if the house price growth remains to continue. The following factors may influence and help housing market become more competitive when unemployment decreases, confidence level will become stronger and population growth continues to rise.
Residential Property Survey Q4 2014 (Overview).pdf (465.82 kb)
18. January 2015 01:18
According to SQM Research Managing Director Louis Christopher, “He expected 2015 to be another positive year for residential property owners.”
There will be an expected rate cuts happen probably in the 2nd quarter of the year. When it happens, there will be a big possibility to boost the housing market. However, interest rate cuts could spark a housing bubble and lots of signs run out of system. Most capital city prices rose last year but it may cool down due to slowing foreign residents and investors. Financial Support is one of the reasons why the property investment slump. We expected a potential fall in housing market in Perth home values and some of the property prices of all capital cities.
According to Michael Janda, “It appears the housing investment boom may have peaked and that’s largely because we’re stock in debt traps and it makes little financial sense to invest in property in Sydney and Melbourne anymore.”
20. December 2014 00:23
Based on the meeting last December 02, 2014, The Board decided to leave the cash rate unchanged at 2.5%. Global economy is continuing at a moderate pace & Australia is one of the countries that has moderate pace. Interest rates really affect the performance of the market.
According to Governor Glenn Stevens, “Interest rates are very low and have continued to edge lower over the past year or so as competition to lend has increased.”
When the economy will boost and interest will drop, definitely it really helps the market to boost especially the Perth’s housing market. However, Australian dollar is falling and help to attract foreign interest. Because of the performance and the higher confidence, it can cause optimism. There is a potential rate cut in the middle next year and could encourage more buyers and investors.
13. December 2014 18:19
According to a property developer with investments in the city, “Slowing population growth in Perth will allow the home building industry to better keep pace with demand.”
In Residential market, Western Australia remains the strongest despite a slowdown in property market. Mining investment really help the market to sustain the growth but sad to say mining sector weakens.
When some investment won’t sell by the end of this year, probably it would help the market to balance. Affordability barriers may kick in to slow price growth. Unemployment is low, confidence level is quite not good and interest rates won’t change, these are the barriers why the market can’t sustain.
When the market will become active in the first quarter and confidence will still be high, I think market will very strong. Interest rate may cut next year and investor activity is likely to continue at high level. If there will be happen next year and it will continue to go well, market encouraged the market to have a good start in 2015.
28. November 2014 22:49
Vacancy Rate in Perth are languishing as many owners and real estate agents struggling to find buyers. Many houses, villas & apartments are vacant and show over-supplied market. There are a lot of properties in Perth market and expected to increase due to trend problem.
According to Real Estate Institute of WA President David Airey, “A slowdown in population growth and a spike in rental listings had resulted in more vacancies.
Having so much supply for houses make the market difficult to cope up. When the supply is too high and population growth slowdown; the conditions result a big drop in demand. Rental properties market weakens indeed because the boom for rentals has ended. Therefore, the rental price decreases due to high supply and very low demand.