NAB: Residential Property still adjusting

by joy.manginsay 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)


Expected Boost in Housing Market may be Cool

by joy.manginsay 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.”

Is there a potential Rate Cut next year?

by joy.manginsay 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.

Will Perth Market continue to slow down in 2015?

by joy.manginsay 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.


Perth Rental Vacancies Soar

by joy.manginsay 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.


Interest Rate Remains Unfaltering

by joy.manginsay 14. November 2014 22:22

As its meeting last November 04, 2014 of Monetary Policy Decision, the Board decided to leave the cash rate unchanged at 2.5%. Reserve Bank of Australia has enough reason to leave the cash rate on hold for a long time; the Australian dollar has fallen and Business confidence fell for how many months. Growth is the global economy also is continuing at a moderate pace. Markets still appears to be attaching a downturn probability and have a consistent moderate growth in economy. Monetary Policy fosters a sustainable growth in demand and provides support to balanced growth in the economy. House price growth is now in moderate pace which driven the interest rate uncut until next year. Therefore, when the market continues swinging and subdued, interest rate is likely to be stable.

Indestructible Property Market

by joy.manginsay 7. November 2014 23:05

For previous weeks, Perth property market has been experiencing downturn. Sales turnover for house has dropped and rents are falling. But despite of the negative results, Perth remains strong and fierce.

Based on the released date, Perth rental yields are outperforming the national average.


The RP Data shows that Perth’s average rental yield is now at 4.7% for units and 4.1% for houses. Despite the gloom, there is a positive outlook for Perth market. When the economic growth is maintained, a better transition for mining and energy resources, when the investors’ confidence will continue to superb, therefore property market remains indestructible.


NAB: First time for Commercial Property since 2011

by joy.manginsay 31. October 2014 17:59

National Australian Bank released a survey for Commercial property last October 29, 2014. It shows that Australian Commercial Property market turns optimistic for the first time since 2011.

All markets were improved and led by CBD hotels. The survey showed that the momentum has turned because business confidence unchanged and it is surprisingly strong. Commercial sector is performing well due to low interest rates and strong investor demand. Property and business services were most positive condition but mining continues to weaken. Therefore, when the confidence will continue to improve and vacancy rates continue to go up, market will have optimistic conditions in all markets.

According to NAB Group Chief Economist Alan Oster, “NAB’s Commercial Property Index rose to +2 points in Q3, its first positive read since March 2014.”




Commercial Property Survey Market Overview (Sept 2014).pdf (158.84 kb)

Much Flatter Housing Market

by joy.manginsay 25. October 2014 17:50

Australia’s housing market is in a constant diversity and volatility of the factors that drive housing market activity. The resources boom is over since mining and international economy slowed down. Having better economy, a nation market should have strong migration and continuing high level of confidence. But why is it the housing market remain flat?

According to Domain Group Senior Economist Dr. Andrew Wilson, “Without a sustained revival in economic activity, housing markets will continue to soften, ending the debate about macro-prudential tools or changes to property taxation policy designed to offset local and foreign investor activity.”

Going forward, if the investor will start to lose interest, housing market is going to have much flatter in terms of price. Last September showed that the sales of Australian housing market were subdued. In terms of number of sales, the market has been decreased and it is holding ground.


NAB: House prices strengthen but rental weakens

by joy.manginsay 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.

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