Where to Next for Property Prices?

Despite the Interest Rates Stability at 4.75% and some negative equity in houses, is there still a chance of an Australian Property crash? There is no doubt residential real estate prices are on the slide even if the economy falls and unemployment rises, they will continued to lower but still it doesn’t count on a crash.

Real Estate Institute of Western Australia (REIWA) figures shows residential property prices fall between 11-15% in the inner suburbs of East, West Perth and Northbridge in the year. Westpac Senior Economist Matthew Hassan said the high prices achieved during the first mining boom in WA had priced many people out of the market. “Since then, Perth’s really struggled to gain any traction in terms of price performance and a common theme of slowing property prices was elevated interest rates, “Mr. Hassan said.

Investors, businesswomen, we still believe and expected a full recovery of the housing  market in WA next year, also we are expecting also that the interest rate cut would be the key to establishing house prices. In addition, we are balancing rental income in return for capital gains in the future.