17. October 2014 17:54
“While the overall index was unchanged, the picture was mixed across the county, with Queensland overtaking Victoria as the strongest state, SA/NT the big improver and sentiment still falling very heavily in WA”. A NAB Group Chief Economist Alan Oster said.
National Australian Bank released their Residential Survey last October 15, 2014. The survey shows that the national house prices in the next 1-2 years improved in all states but there is a forecast expectation that rental growth weakens. The demand of buyers is still increasing and now is a great time to build more. This is the key and very significant to attract investors to boost the buying activity. Rising unemployment, sluggish household income growth, and affordability issues are the factors that make the market become more modest. Among all the states Brisbane and Sydney are expected to lead the market but Perth continues to weaken. Confidence in property market in Perth is collapsing which warns the city lagging. The survey shows pessimistic forecast because of rising trend unemployment.
10. October 2014 18:31
According to Glen Stevens, Governor of the RBA, “In Australia, the most recent survey data indicate gradually improving business conditions and some recovery in household sentiment after a weaker period around mid-year, suggesting moderate growth in the economy is occurring.”
Last September, RBA leaves the cash rate unchanged by 2.5% which really affect the home buying activity. Perth’s market remains fair because of the steady growth in median house price. September sales increased by 1% which was fair with regards to real estate sales whilst median rent has remained steady at $450 per week. Perth region remains strong and have potential in profitably opportunity because of the consistent population growth. This is one of so many factors why Perth remains solid despite of market softening. Low interest rates and increase of demand for residential homes is making investors and homebuyers to see the Perth region as a place where can strengthen the long-term investment.
3. October 2014 18:15
“The September result would be seen as a positive indicator by the RBA, which has been considering additional measures to curb lending to property investors, “Head of research at RP Data, Tim Lawless said.
The annual trend of capital growth has been trending lower and seen the housing market conditions remain very buoyant. If this condition will occur, it is a warning to take more action taken in order to have stable strategy. Economists expect the strong lift in approval to furnish new houses. If the supply will lift, it will help the house price growth. When the housing activity continues to going strong, it makes the backbone of Australia’s growth. When the residential construction strengthens, there will be a huge positive impact on the economy. Therefore, house values remain unchanged over September but housing construction is the best way to rein surging house prices.
26. September 2014 18:30
According to REIWA’s David Airey, “There has been more of a demand of properties and less supply in these particular suburbs and this is what is causing the houses value to be raised quite significantly.”
In Western Australia particularly in Perth, Perth house prices increased 3.5% for a median price of $512,500. Consumer confidence is heading the right direction that dwells the buying and selling conditions. Due to expected growth of GDP, Housing Industry attributed figures to housing building boom.
Property market become softens due to low demand and has too much supply. But still the growth continues due to reasonable rate that’s leads positive outlook. New home building put in a strong performance and helps the Property market continues to goes up. Optimistic discourse dominated the growth and it promptly change because of low and suitable rates.
20. September 2014 00:01
“The Bank for International Settlements (BIS) released residential price statistics for most developed countries around the world- (Australians struggle with world’s second largest housing bubble.)”
Australia’s property market boom continues unquenched. Property price rise, housing costs rises and falling rates of housing affordability, the data shows. House and rental price instability has significant consequences for the broader economy because it generally reinforces economic volatility. All Australian households were experiencing housing stress because house price and rent increases. Therefore, we need to have better development strategies in order to have satisfying housing needs and well planned management on how to sustain the market.
11. September 2014 18:23
According to The Real Estate Institute of Western Australia (REIWA) “Despite July property data including a further decrease in median house prices, the rental market has held firm.“ It shows that there is no movement for August. The median price was steady at $540,000 and the median rent is unchanged at $450 per week. Despite of the unchanged Perth’s rental market, the sales turnover has slumped, however there is always a seasonal dip especially during spring weather.
“Reported sales continued to trend downwards and were 10% down on June and similar to April, when there was a notable seasonal dip in sales over the Easter and ANZAC Day holiday period, Mr. Airey said.
There is an increase of the number of properties on the market by 1% for August and rental market was also showing signs of stabilization. Some of the suburbs showing an increase despite of the high vacancy rate but still the market remain strong. We cannot predict the flow of the market and the house price will continue to increase, the market softens but if the house prices decrease, the market may uplift.
5. September 2014 17:55
According to the Domain Group’s Spring State of the Market Report, “Prices growth in Perth is set to gradually resume over the remainder of 2014 and the city’s median house price is forecast to increase by between 3 to 5% over the 2014-15 financial year.”
From previous months, Perth’s property market was running low and relatively subdued but predicting the market to be the best spring. There is no doubt that there is a real movement in the now. As the record shows that Perth has been strong and consistent prices growth over two years. Definitely, there’s no doubt that there is real movement in the market now.
First homebuyers are back to the market and it is also strong. The strong investor activity makes the market more competitive and driven the house price sensitive. Perth property prices rose 1.7% and expected to continue.
29. August 2014 18:13
According to data from the Real Estate Institute of Western Australia (REIWA), “House prices in Perth have dropped further since the end of June.” Based on the REIWA’s Statistics for the three months to July show Perth’s median house price down a further 0.2% to around $540,000.
Despite of the decrease in median price last July, the rental remains firm and remains unchanged at $450 per week. It showed also that Perth’s median house price had dropped last June. House prices are generally higher compared with the precious months. By this result, it shows weaker market and softens the median. Typically, the rent per week for a house is $460 and $435 for unit, apartment and Villa. But the rent dropped by $10, In Western Part, we saw some areas of market tightening even the housing market experiencing a huge increase in rental listing.
12. August 2014 17:48
REIWA reports that Perth’s property market cooled further in July with lower sales turnover, fewer listings and a slight median price dip.
According to REIWA President David Airey, “July figures were normal for winter and expected the market to pick up in spring.
The July quarter indicates that the declining trend in Perth’s median price has continued. It is not surprising to have this result because of the affordable market which pulling down the median. Some suburbs dropped their rents per week but Perth’s rental market is steady over the period. The prices were down and the rental market is cooling with median price decline by 1.8% at the three months to April. Perth median rent is still $450 per week and predicted the rise of vacancy rate. Therefore, if the vacancy rate is increasing, probably the rents will become soften.
7. August 2014 23:45
Reduced rental demand is the key feature of the Perth residential market at present. Tenant enquiry volumes are significantly down, leasing timeframes have blown out from 1-2 weeks vacant a year ago to 3-4 weeks and beyond. What can you do as an owner to lease your property quickly?
Firstly, ensure your property is ready to rent. The front lawn and gardens must be trim and weed free. Cut excess vegetation away from the front windows and entrance. Inside, professionally clean the carpets, do a full vacate clean of the house, and repair all minor maintenance items. Remove any rubbish or old tenant belongings left behind. Check all lights have operating globes, heaters are operational and kitchen appliances work. Positive first impressions are vital in this weak market.
Secondly, ensure your property is marketed well. Use a professional photographer, erect a professional for lease sign, and write professional advertising copy. You will need to be listed at a minimum on realestate.com.au and reiwa.com. In addition you will need to conduct home opens twice a week. Tenants do not show up for by appointments much anymore. Relying on the phone to ring, classified ads in the newspaper and online with gumtree screams “private landlord” and is a magnet for sub-prime tenants. You may as well leave the keys in the meter box now.
Thirdly, be prepared to review your asking rent. If your property is vacant for more than two weeks, then cut the rent now, and cut it hard. Drop the rent by a minimum of $30 per week. You cannot retrieve the lost rent from empty weeks, but you can increase the rent to a sitting tenant at the 6 or 12 month lease renewal. Focus on getting a rent-paying tenant in the property, not the actual rental amount.
Fourthly, do not drop your screening standards. If you have already got your property looking good, marketed well and dropped the rent, it will lease. It is better to wait another couple of weeks than to place a bad tenant and lose thousands of dollars in repairs and rent arrears. Be patient and a decent tenant will apply. Remember when the rental market was hot and you never had an opportunity to get inside your property to repaint and spruce up? Guess what, now is your time!
HouseSmart Real Estate Pty Ltd