14. May 2015 02:22
According to the Real Estate Institute of Western Australia (REIWA), “More and more Perth rentals are being left vacant as the city’s population growth falls and record low interest rates encourage tenants to become first homebuyers.
We all know that the Perth vacancy rate lifted to 4.4% due to the falling population growth. Population growth drops because many lost their jobs in resources and mining. Mining was the biggest contributor to attract migrants and helps the population growth increase. Nowadays, many vacant properties which shows supply is too much but the demand is very low.
Even the median rent has dropped, due to falling population growth, and former tenants who become first home buyers, the vacancy rate for the first quarter of this year and this is not usual. The normal rate for vacancy rate is 3% but 4% and up is inconsiderable. Property owners and agents should attract tenants the asking rent and good services. Amid the competition, owners and agents should maintain the good tenants.
2. May 2015 21:50
Australian Economy is growing but encountering a sluggish property market, nowadays. Interest rate remains as is which plays a big role in having a competitive market. Most of the capital cities in Australia sluggish and property market upswing. Which is which, you want to be a buyer or a renter?
According to Co-chairperson of the REIWA property manager Network Kathryn Massey, “Population Growth had slowed and rental stock has soared. The number of rental properties continues to rise with our data showing 6,600 listings and a vacancy rate of 4.1%.”
Perth rent has an average of around $450 per week for a house and $420 for an apartment, unit, villa or townhouse. Property for sale considers a heightened competition for the properties that are on the market. Many properties are for sale and price is affordable and reasonable. While when you rent a house, there are a lot of vacant properties and expects rent price and vacancy rates remain steady.
20. April 2015 18:14
Interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding, “An interest rate definition”. Will interest rate really helps to fuel the housing bubble? Will it encourages people to spend money on home improvements? Is it the health of the economy?
Nowadays, many are pessimist and many are expected the property in Australia but has not yet. House price is slightly high and it doesn’t mean that we have housing bubble because of the high prices. Interest rate is already low and it can cause inflation and make business loans more affordable.
According to Greg Jericho, “Another interest rate cut will fuel a housing bubble in danger of bursting.” When interest rate is high, it means fewer people and business can afford to borrow. It also reduces the capital required to business expansion. When interest rate cut, it will boost the economy and attracts investors. When the interest rate cut happens, it can cause recession and it cures inflation.
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.”