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.
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.
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.
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)
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.
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.