According to Real Estate Institute of WA President Alan Bourke, The 19% prediction was ‘way too high.” WA property experts forecasted that Perth house price will increase 19% over 3 years. Despite recent declines, I think having strong income growth due to mining boom and high population growth influenced in improving housing affordability.

RP Data Research Director Tim Lawless said, “He did not expect any growth over the next six months, from next year the timing would be right for price increases of up to 9% per year.” Perth is showing recovery because of high migration demand and would help to drive up prices. Homebuyers are returning on the market, consumer’s confidence coming back and economic stabilization are some of the factors showing Perth’s improvements.


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Australia consistently the second place for the world’s highest development index and has the lowest level of corruption. Australia’s economy had become two-speed, with the mining sector growing and other sectors. Australia’s economy performs well because consumer’s confidence is returning on the market and almost all latest figures showed a rise. Analysts had expected the gross Domestic Product to grow twice.

 

According to Australian Treasurer Wayne, “Australia is the strongest performing developed country bar none. Australia’s 22 million- strong population sits in a very sparsely populated country.” Asian Immigration has increased in Australia’s diversity especially in Melbourne, Sydney and Perth.

 


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According to The Residential Property Prospects, 2012 to 2012 report from Economic Forecaster BIS Shrapnel, “New South Wales and the resource-rich states of Queensland, Western Australia and the Northern Territory are already showing signs of recovery.

Homebuyers are very active in the market and expected to become more active for coming years. Homebuyer plays a big role why property market is slowly returning to normal levels. Perth and Brisbane were forecast to record the highest growth in median house prices. Property Market are improving right now because of low stock, low interest and vacancy rate. Property market is almost about to turn around and seeing early signs of recovery.


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According to Commonwealth Bank  Chief Economist Michael Blythe, “The Central Bank’s decision to cut the rate by a quarter point rather than the half point that markets had suggested it was ‘keeping its powder dry’ in case the Europe situation worsened.”

Last June 05.2012, RBA lowered its interest rate to 3.5%. RBA’s decision relies on the global crisis because Europe’s economy weakens and China has moderate growth. Australia is known for Mining Industry that influenced to lift economic growth. Continuing to run a deficit would stimulate the economy and having growth in the nation’s economy.


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According to Jason Anderson, Senior Economist at Property Research and forecasting house Macroplan, “Perth’s rental market is getting tougher and with interest rates coming down, more people will seek to buy. A 5% price growth this year is a reasonable expectation.

We all know that Sydney is solid as rock. This year 2012 Sydney and Perth leads this year in Residential Property Market. The best bets for 2012 are Sydney followed by Perth and it will outperform for this year. Perth Residential sales were increased by 13% and homebuyers are returning to the market. This movement in sales influenced why Perth is one of the best outperforming state in WA.


Tags: perth

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These past months, Perth Property Market soften but declining level of stock on the market puts pressure on both prices and rents. Latest figures shows that Perth rental rent and prices have increased and sign for recovery. Based on REIWA, number of house for sale are declining but reported number of house sales are steady, this might be one of the reasons why Perth rent could be on up.

According REIWA Deputy President Ian Cornell, “Sales numbers heading towards long term average levels is a good sign that the Perth property Market is overcoming its confidence issues, a “dramatic collapse” in building approvals could see the market turn significantly.” I think, putting pressure for buyers and renters in residential housing market is one of so many reasons why house rent and prices increasing.  Definitely, increased competition for rental properties will push up rent and house price will increase also.


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According the CBRE’s first-quarter WA Market view report, “There was a 13% increase in the volume of Perth Residential sales in the March Quarter, with first-home buyers and investors returning to the market.”

According the firm’s associate Director of Global Research and Consulting Sam Reilly, CBRE recorded 5,663 sales in Perth metropolitan area over the first three months of the year, compared with the 5,268 in the previous quarter and a noticeable contrast to conditions in the prior 12 to 18 months, when sentiment was low.”

Perth inner-city market has been particularly strong because of the mining resources and investors demand on the rise. Perth house prices increased by 3.9% over the quarter to a median of $487,500 and we cannot tell that it’s a full market recovery. These are some indications that we are on the way of recovery.

 


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Treasurer Wayne Swan had challenged the major banks to pass on the latest interest rate cut in full. Only ANZ decided to pass for giving households a “fair go” and ANZ customers benefiting from this decision. ANZ pass rate cut by full 25 points to 6.8%. NAB remains the lowest player in the market by 6.7% followed by Westpac with variable rate to 6.89% and the Commonwealth bank, lowering its mortgage rates by 21 points.

ANZ Australian Chief Executive Philip Chronican said, “Home loan customers are doing it hard at the moment and passing on the full RBA rate cuts was the right decision in the circumstances.” NAB, Westpac and Commonwealth are not passing on the full rate cut. The Central Bank tried to lift confident in economy by lowering official rates. More rate cuts are expecting for coming months and I think Australian Economy is in good condition now because of high growth figures and strong jobs.


Tags: anz, Banks, Rate Cut

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Housing markets ended 2011 in a better position but these past months, the pace of house price declines. Is this a year to exit a period of negative judgment? Even the housing bubble, Is 2012 is the year for recovery?

According to RESIDEX CEO John Edwards, “Australians are much better placed than many other people in the world, and the adjustment period we have recently seen with a clear upswing in our markets in the last few months, means that there is a reasonable chance that our markets will advance positively.” Some suburbs in Australia have quality growth trends especially in Melbourne, Hobart and Perth. These are some of the suburbs are improving and this result may be the overall improving position to be trend for the coming years. I think, housing market is confidently heading to positive trend and for the past two years, Australia house prices could be a good time to recover and to exit a period of negative judgment.


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According to Westpac Managing director Gail Kelly, “Australia is unlikely to see the housing boom that sparked a massive rise in personal wealth across the country in the decade.

According to Reserve Bank Governor Glenn Stevens, “One of the main reasons Australians were so “grumpy” was because of the dramatic change in the economy since the glory days of the housing boom.

Above mentioned statements are some of the comments from different sectors. Lot of factors affecting house price especially the Interest rate cuts. It really plays a big role in Housing market. Businesses and worker’s wage are not able to cope up in pushing improvement in Australia’s productivity. 


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According to Loan Market Corporate Spokesman Paul Smith, “75 basis points worth of official interest rate cuts by the Reserve Bank of Australia (RBA) over May and June had helped restore confidence.” A new survey found that two consecutive months of Interest rate cuts have inspired borrowers and investors to invest in the property market. Interest Rates have a big positive impact for consumers and for the economic conditions.


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According to a report by David Airey of REIWA, “The Perth housing market has now had six months of rising prices after a couple of years of decline”. Median price levels out because of gaining back the consumers’ confidence. Metropolitan rental market has seen some of the strongest movement and has strong rental accommodation at home opens.

Because of the trend, many potential buyers are returning now the market and renters may switch to being a homebuyer or an investor.  Rental yields are also showing good vibes on the housing market and to rents have increased. These are some of the indicators that show positive signs towards stabilization of the Property market.


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June 10, 2012, The State Emergency Services have received more than 300 calls for help across Perth. Thousands of Western Australian homes are without power because of the storm lashed and bureau described as “once in a decade event”.  Yesterday afternoon, Western power had reported more than 100,000 homes in Perth and more than 50,000 in regional areas had lost power because of the violent storm. The said storm has left trail of destruction, like road closured and significant damage to buildings and infrastructure.

According to the Fire and Emergency Services Authority (FESA), the South-West experienced a “very unusual” weather event. Homes and business could be without power for days due to downed power lines and debris spread across roads. Perth residents are being advised to turn off electrical appliances and stay away from windows.

 


Tags: perth

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Perth is the fourth largest city in Australia and it has the highest population growth rate of all Australian capital cities.  Perth is benefiting from one of the biggest mining in Australia’s history. Are these things mentioned above factors of Perth’s housing shortage? Are there really rocks in the Perth Property Market?

According to Jason Anderson, Senior Economist at Property Research and forecasting house Macroplan, “Perth’s rental market is getting tougher and with interest rates coming down, more people will seek to buy. A 5% price growth this year is a reasonable expectation. ABS figures showed more than 1000 people moving to WA every week from overseas or interstate and Perth has population of 1.7million. Many investors are penetrating the market because they expected to have good rental returns and I think buying an investment property considered a good location and competitive priced property. Nowadays, we all know that Perth’s housing shortage is becoming worse, this type of accommodation are suited for investors to buy and a renters to rent. It leads also in increasing rent ad high price growth and really attracts investors to return into Perth Property Market.


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Last March quarter, Australian Economic growth was much stronger because of Gross Domestic Product (GDP) rose by 1.3%. Based on the Australian Bureau of Statistics (ABS) released yesterday June, 06, 2012, Gross Domestic Product (GDP) rose by 1.3% in the three months to March for an annual rate of 4.3%. Because of GDP, Australian dollar rise to its highest level.

According to ForexCT head of Research Steven Dooley, “the surprisingly strong gross domestic product (GDP) result boosted demand for Australian dollar. During the intraday trade the currency rose to 98.63 US cents and this is the highest level since May 22, 2012. Australian dollar expected to move higher on the coming days.


Tags: dollar

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Australian Interest Rates decisions are taken by the Reserve Bank of Australia’s Board. The official rate is the cash rate. Yesterday, June 05, 2012, on RBA’s Board meeting, the Board decided to lower the cash rate by 25 basis points to 3.5% effective today. Will this Interest rate cut brings the residential property market on the top and to bring back the consumers’ confidence?

According to Housing Industry Association Senior Economist Andrew Harvey, “The second cut in as many months would help confidence and activity in the residential construction industry.” The cut was expected by so many economists but the major banks didn’t pass rate cut in full. However, the recent downturn in housing market influenced the board for the rate cut and it shows that this is a sign of stabilizing.


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Based on the RP Data released last June 01,2012, Median Property declined last May maybe because of the increased of interest Rate and fell to $460,0000. Buyers are more active now that indicates growing consumer confidence. It means Perth’s median property price remained volatile and has positive results.

According to Real Estate Institute of WA, “Sales in Perth increased 24% during the past two months to 6979 properties.” Based on the data, we’ve seen improvement and it’s a good sign that Perth is rising and growing. Housing market was expected to continue perform much better and continue to improve.


Tags: perth

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According to Real Estate Institute of Western Australia (REIWA), “There was a 24% jump in the number of properties sold across metropolitan Perth in the past nine weeks when compared with the same period last year.” We all know that investors are returning to Perth Property market and there was an increase in the number of inquiries from investors. There’s balance equilibrium in a property market because prices goes down and rentals goes up. High rental encourages more to homebuyers to buy than to rent a house.

According to President David Airey, “the number of rental properties has rebounded to 2507 after dropping to just 2105 in March-another sign that investors and first homebuyers were active.” I think there was a modest growth last March and there was growing confidence in property market. Therefore, property market has pretty returned to normal and improving.


Tags: Homebuyers, reiwa

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