January is usually the quietest month for sales but early January most agents surprised the number of freshly listed home selling and home sales as well. One of the reasons why it happened because of the two interest rate cuts last November and December. It really helped to encouraged home buyers to enter and penetrate the market. Lower interest rates have helped the property market and many are expected that they could even go down further this year.

 

According to Senior Economist with the Fairfax-owned Australian property Monitors, Andrew Wilson, “Housing affordability is at its best level for a while with most prices flat over 2011 and interest rates down. So there is a little bit more optimism since last year and more confidence to Australian Economy and another rate cut this early first quarter will really improve the market and this is the big surprise to all because this rarely happen of freshly listed home selling since January is the quietest month.


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According to the RP-Data Rismark home Value Index, “Index city home values across the country lifted 0.1% in November-the first increase since December 2010.” One of the capital city home values which lifted slightly is Perth. Perth property prices lifted 0.5% last month and Perth outperformed the rest of the country. Sydney and Canberra have fallen 0.5% and 1.6% respectively. We have very optimistic reflection based on the RP-Data figures and indicates that housing activity performs better and will rebound solidly this year. Perth is not the only city that performs better nowadays, most of the capital cities are slightly increasing on the home values because of the homebuyers enter the market and experts predicts this year will be the year to cope up all the negative experienced last year.


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We all know that Interest Rate had cut twice at the end of 2011, to be exact, during Melbourne’s Cup was the first rate cut with a 4.25%. After a year of high and up performance, Australian house price rose for the first 11 months. Interest Rate is the most Australian’s sensitive sector and some analysts expect to see house prices rising again this year 2012.

According to Rismark Director Christopher Joye, “For Australian’s capital city and regional markets, this was the single best monthly result since December 2010, and augurs well for housing activity during the first quarter of 2012, which we project will rebound solidly.” After the two consecutive Interest rate cuts that we had, it encouraged more buyers to return into the market and expect house price continue. Some Economists are forecasting that there will be another interest cut this early February and this coming rate cut will really help the market and encourage first home buyers to enter the market and there will possibility that house price will increase.


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Based on the RD Data-Rismark’s latest information, the median price last November 2011 returned to growth and will continue to grow these coming months. The capital city house values were up by 5.75 and the units by 6.8%. Some important point  that we should bear in our mind when considering the softening in prices these coming months;  increasing cautious consumers in the environment and the instability of Federal government. These are some of the points that were opposing in crashing the market.

According to HIA Andrew Harvey, “Rental yields continue to grow and with interest rates on the way down this means that the attractiveness of a purchasing a property, either to get best of the rental market or as an investment, is on the rise.” The back to back interest rate last November really helped everyone to see a chance nowadays that there will be having a growth in 2012. Lack of rental properties are tightening now and make the rent raised and having healthy employment levels are indication in which housing demand will boost in the market.


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An expert believes that Perth property market will have a strong recovery this year and will grow in value this year. Perth surrounded by many hotspots in Murdoch, Como, and Fremantle in which these were highlighted as strong investment opportunities to encourage tourism.

According to Property Economist, Dr. Andrew Wilson, “Perth capital city market appeals as a standout prospect for house price growth with the median price set to increase by a double-digit percentage by year’s end.” Pilbara renowned property market will continue booming in terms of escalating prices and rents because Pilbara topped a national list of property hotspots with Pilbara’s biggest port. In the economy, needs great performance, low vacancy rates and higher per capita income, these are some indications in which the economy of one country is boosting


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According to Residex CEO John Edwards, “Our housing markets ended 2011 in a better position to where they started and I am confident that the year ahead will be better for residential property owners compared to last year.” John Edwards expects the overall housing recovery this year and exit a period of negative adjustments. The basis fast that last December 2010 house prices declined and as well as December 2011, it also declined by 0.72%. Based on the trend in house and unit nowadays, the monthly growth trends shows that Melbourne, Hobart and Perth are performing better which makes their monthly capital basis improve while Canberra, Darwin, Sydney and Brisbane markets are going down. The Australian’s situation are facing now are much better to adjust and this is the time that the market has a chance to achieve a good result and to recover.


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This past years Sydney residential property market is the least volatile and Perth had sharper and shorter price rises. Residential Property market are not stable, sometimes things are going to get better or going to get worse. Industry specialists are surprisingly confident of a strong and robust year this year.

According to Senior Economist at Research House Australia property monitors, “The best bets for 2012 are Perth followed by Brisbane. Sydney is solid as a rock. But don’t expect much in Melbourne ‘til the third of fourth quarter.” Based on the date, Perth and Sydney are the two states will perform strong and competing in 2012. It will get better if the interest rate will cut soon because if interest rates cut, more people will seek and eager to buy a house. People are very optimistic about this data because of the mining boom and expected the price growth will increase and tighten the pressure.


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First home-buyers and trade buyers are keeping residential property active and it shows that they have continuing to rise in the market. According to a survey, most active sector in Australian home finance market in 20125 is expected to be the first home buyers. The data shows that 36% expect the first home buyers to dominate and penetrate the housing finance market and it started to anticipate an increase this year.

According to Commonwealth Bank Economist Michael Workman says, “The interest rate cuts and the FHOG scheme have had quite strong impact on lending. The steep declines (in housing loans) are over.” Because of the first home-buyers, there will be another growing market force with the home-buyers investment properties as their entry point to the property market.




We all know that Reserve Bank of Australia (RBA) reduced the cash rate by 25 basis point last November 2011. After the said cash rate cuts last year during the Melbourne’s cup, consumer expects another rate cuts last December because of the Christmas season but unfortunately it didn’t happened. Analysts predicts that there will be another cash rate cuts this year, Is really lift Aussie confidence?

According to Westpac, recent interest rate cuts by the Reserve Bank of Australia (RBA) have failed to lift consumer confidence. It shows that Australians are still pessimistic about their financial future. Westpac Chief Economist Bill Evans said, “Despite the RBA having cut the overnight cash rate by a total of 50 basis points, with the major banks passing on the full cut to variable rate mortgage borrowers, the index is still slightly below the level which it registered before the first rate cut.” Westpac expects the RBA to cut the cash rate by another 25 basis points on February and Mr. Evans expected also to have another cut in May.


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According to latest Property Council of Australia (PCA)-ANZ Property Industry Confidence Survey.” Property Market participants have more confidence in and growth expectation for Australia’s resource-rich states and territory. Based on the PCA-ANZ, there was increasing divergence in property industry confidence, the national level increased from 104 to 107 in December in which the neutral level is 100. The Northern Territory is the biggest jump in confidence and the highest rating followed by Western Australia and Queensland. The residential property values improved strongly in Western Australia and Queensland and have gain in North South Wales. The property industry expects the RBA to cut interest rate in early this year and ANZ expects house prices to ease further but we need to cautiously optimistic view and tightening of the Australian housing demand/supply balance.


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Based the Real Estate Institute of Western Australia (REIWA), Perth’s median price increased by 0.5%, with up by $5000 on the September. This is the first lift in median price for almost 2 years that house price has risen because of the more trade-up buyers entering the market. REIWA data shows that first-home buyers continue to increase as well as the trade-up buyers therefore there is an increase of the house sales as well.

According to REIWA President David Airey, “First home-buyers have been skewing the median downwards by generating large sales volumes of more affordable homes, but now this has been balanced with more up-grade buyers in the market who tend to purchase the more expensive properties.” Entering the market of the home-buyers makes an evident that greater confidence returning to the property market. It reflects that rental market will tighten but the house sales will increase. But we need to be maintain some level of cautiousness and well-prepared whatever will happen even WA having a robust economy.


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Perth is the largest City in the state of Western Australia and has a steady flow of mining activities in the state and many investors are buying up an office space or a house in the city. Over the past 12 years, Perth become more challenging for sellers to sell their home and have seen record prices to 2-3 times return on the value of their investment.

According to Imran Mohiuddin, head of Colliers International in WA, “Our mining, banking and financial sectors are capably run and the legal infrastructures, technology, quality management and transparency of laws and business make Australian a very easy place to do business.” Over 2011, over $880 million were exchanged in office real estate and this is a big plus for Western Australia compared with the rest if the Western World. Because of the good news, forecasters expect home values in Perth suburb to rise in 2012 and most of the values in Perth suburb to rise in 2012 and most of the Australian future look bright and competing.


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Australian Property Monitors (APM) is predicting growth in 2012, citing anticipated economic growth and rising demand for residential properties and a new report showed that Property Markets in Australia are expected to recover this year. New homes in Australia climbed in November 2011 compared the previous months and new build- properties bought in Australia increased by 6.8%. These are first start indication that real estate may rise and recover this year and expected the reserve Bank of Australia (RBA) will have interest rate cut before first half of the year because interest rate cuts helped to boost Australia Real estate sector. Australia Property Monitors (APM) expects more interest from investors this year and asserted that house prices will climb by between 3%-5%. Because of all these predictions and expectations, fewer buyers have confidence to enter the Australia Real Estate Market in which really help to boost and rise of the said sector.

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HIA Senior Economist Andrew Harvey said, “Further rate cuts are absolutely essential to shore up home buyers confidence in light of globe economic conditions and to help ameliorate the effects of the increased consumer cautiousness that has pervaded the Australian Economy.” ”The latest approvals update is on the right side of zero growth, but the level of total approvals remains weak and serves to reinforce the need for further interest rate cuts in the first half of 2012,he added. Last November 2011 total seasonally adjusted building approvals rose by 8.4%, house approvals rose by 4.9% in November while approvals for other dwellings rose by 16.1%. Across the states and territories of last November results, Victoria was standout adjusted approvals and Western Australia fell by 16.9%.

According to Rismark Director Christopher Joye, ‘The figures were an optimistic reflection of the sector’s potential in 2012. This was the single best monthly result since December 2010. It augurs well for housing activity during the first quarter of 2012, which we project will rebound solidly.” The data showed flat positive gains in Sydney, Melbourne, Perth and Canberra is the best values across the year. According to Colliers international, there are more buyers from overseas especially Chines Buyers and half of the spending on Queensland Residential property. Brisbane was the second most popular area and Gold course estate are also popular. Building approvals in Australia rebounded in November and total approvals remains weak and serves to reinforce the need of the further interest rate cuts in the first half of this year.


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These past years, Residential Real Estate has created more millionaires compared to other form of investment. Based on the Report, Asset Returns Past, Present and Future, said “Owner-occupied housing had made annual average returns of 12% over the 24 years since 1987 even when costs and taxes were factored in.” The next best asset class will be the Investor housing and owner- occupied housing had the highest returns in part because of capital gains tax exemptions. Investor housing  were followed by government bonds, term deposits and commercial property in performing better equities and shows strong returns.

According to Research by ANZ, “Residential Property has eclipsed shares as Australia’s highest returning asset class over the past 24 years, but not over next decade it will be outperformed by Commercial property.” Because of the housing shortage, many investors will take their fortune to Residential Property and house price may rise. First home buyers also will start to re enter again the market in which really helps to improve the economy.




According to a Leading Real Estate Group, “property values in Sydney and Perth will rise as investors enter the market and many suburbs have been tipped for growth.” The real estate in Sydney and Perth will rise by up to 5% this year. Sales in Sydney are expecting to increase in the 2nd quarter this year and the investment activity is predicted to start in the inner suburb of Sydney. In Perth, Cannington, Kenwick and Kelmscott, there are the Perth suburbs are expected to investment activity and more investors are expected to enter the market. Price will be the driver for buyers considering Sydney investment opportunities where investors and homebuyers will be competing head to head. But still there are some opportunities for investors and homebuyers outside of Sydney and Perth especially suburbs that have an easy access of transportation and those who are near in the airport.


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According to The Housing Industry Association’s New Home Sales Report, based on the survey that Australia’s 100 largest builders, it shows that there is a significant bounce for sales in November 2011. Across Australia, there is a 9.8% increase in which driven by stronger New South Wales and Victoria. The total home sales across Australia increased by 6.8% in November compared with 2.8% gained last October.

According to HIA Chief Economist Harley Dale, “This is a healthier but not expected result.” “Falling Interest Rates, a competitive building market, and greater availability of skilled trades amidst still very soft overall demand, Dale added. The immediate upswing of the home sales across Western Australia was when the first interest cut last November. The volume of house sales improved to 5 mainland states in November 2011 including Western Australia with 5.7% increased.


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According to Commsec’s Chief Economist Craig James, “West Australia is clearly the nation’s strongest economy and sits in a group by itself.” CommSec analyses the states through eight indicators namely economy growth, retail spending, equipment investment, unemployment, construction word done, population growth, housing finance and dwelling commencements. These are the indicators that CommSec basing their analysis in one state of the country. The WA Economy has been the significant out-performance throughout the year and still the main weakness is the residential sector that makes home price fall. Among all the states in WA, Victoria is the strongest in the housing sector while the South Australia economy performs solidly on overall economic growth and construction work. The Northern Territory continues to outperform with low unemployment and housing finance are below long -term average and underperforming other states and territories.




Year 2011 was set as a period of correction for Australia’s housing markets following the unsustainable growth from previous years. Australian housing markets displayed a generally resilient performance in 2011 and the house growth is forecast for 2012 as economy major strength in most capital cities. Australian Property Monitors Data has revealed that capital city housing markets have generally performed encouragingly in 2011 and the National median price rose by 17% in 2011.

Bureau of Statistics data confirms the solid performance of Australian housing markets in 2011 and the nature and strength of Australian housing markets in 2011 was underlying supply and demand of individual markets. Most Australian capital city housing markets including Perth are expected to set a record growth in Median prices over 2012 s the national economy gathers strength. The possibility remains of some growth in the median house prices by the end of 2012 as the impact to make the national economy will become strong and stable economy to compete other country’s economy.


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Because of the RBA’s cut to the official interest rates, property prices finally received a little boost and property experts expects more of the same market in 2012. RP data released home prices rose in November 2011 by 0.1% and the slight rise in November was the first increase in home prices since December 2010.

CommSec Economist Craig James expects Australian property prices to grow around 5% in 2012 and he expects RBA’s rate cuts in November and December will help lift demand and prices for housing. According to RP Data Analyst Cameron Kusher says that while the interest rate cuts will help boost sales activity, prices are unlikely to move. Kusher nominates Sydney, Brisbane, Perth and Canberra will perform better and they look some improvement in a small positive band and expect a period of flat growth.


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