Will Perth Market really fall?

With constraints remaining on new supply, and demand from tenant increasing, rental levels are starting to increase. This activity has stabilized with outlook continuing stable with prices will have modest rise. Propell National Values shows that rental level in Perth have increased on $5/m2 on the 2^nd quarter this year and capital values have firmed by about $100/m2 and are $1,100 to $2,400 for small units, and $850 to $1,700 for larger warehouse.

According to ANZ Head of Property Research Paul Braddick said, “There were both good and bad elements to Australia’s struggling property market especially in the embattled Western Australian market. The bad news du jour was the uncertainty surrounding the future of the Eurozone economies.” Mr. Braddick is a firm believer in overall fundamental’s strength, more massive population growth expectations for Australian combined with significant housing shortfalls predicted for the coming years. He also suggested that the Reserve Bank of Australia (RBA) will cut interest rates again. Satterly Property Group called on the RBA to quickly cut 50 basis points, or ½% and Spruinking Land Sales, also called for another 50 basis point cut in February and hope the RBA will heed all the advices from them to further 50-100 basis points off cash rate in the 6 months between February and August next year. Hopefully, next year Perth Property Market will hit the bottom by March and Perth will boom and become stable in order to reach the median price soon.