Analysts predict that Perth housing market will continue to up this year and house prices will continue to rise this year. A median house price of Perth is very competitive with median price of $536,000.

According to Andrew Wilson from Australian Property Monitors, “There are signs the market is recovering and greater buyer confidence is also set to increase in momentum.” Increased confidence is one of so many factors to encourage more investors into market. Consumer confidence is growing and become more active in property sector.


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According to HIA Senior Economist, Andrew Harvey, “The March quarter saw a 6.8% increase in land sales and it’s encouraging that the improvement was broadly based across the states. With the exception of Adelaide, all the capital cities saw increases in the numbers of residential lots sold.” Having an increase in land sales encourages that the possibility of the sales will increase more in coming quarters. Despite of an increase of land sales, new home building sector continues to tip down. An increase of sales is positive outcome and it means it is improving but the volume remains weak.


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The WA property market is beginning to pick up after a long period. First homebuyers have been more active in recent times and investors are taking much keener interest to enter into the market. These are some indicators of healthy property market.

According to Urban Development Institute of Australia WA Chief Executive Officer Debra Goostrey, “Whilst we’ll still see some negative data as the downward cycle comes to an end, all the lending indicators are signaling the market’s about to enter a positive phase.” An increase of home loan commitments indicates a healthy growth in the number of buyers. Interest rate cuts give the buyers an enthusiasm to buy or purchase more properties. More buyers and fewer properties for sale would influence a rise in home prices and I think prices stabilization will probably increase of sales.


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Australia is a boom country and standout among all other countries.  WA is the boom state and economists expected that WA will be the nation’s standout property market these coming years.

According to Senior Economist Mark Wallace with RPS Australia Asia Pacific, “Western Australia, with its high income growth, above average market dynamism, structural uplift in mining investments and robust migration-led population growth, will be the standout market over the next decade.” Homebuyers have been the dominant players in WA housing market and household income growth and economic activity will drive house prices. Wan have the real opportunities for the coming years and innovative housing may grow and will have exposure to economy.


Tags: house prices, WA

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According to ANZ’s Head of Australian Economics and Property Research, Ivan Colhurn, “the RBA Board’s July Minutes July Minutes showed that the Bank saw growth momentum in the Australian Economy to have been a little stronger than it had previously thought.” Economists concluded that RBA may leave the cash rate on hold next month’s board meeting. I think, low inflation result is one reason why Interest rates unchanged because low underlying inflation will not be enough. Indeed, we still are hoping that it would have an increase of probability for further rate cuts down the track. Hopefully by the end of the year, there will be a decrease in Interest rate.


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According to Australian Property Monitor’s Dr. Andrew Wilson, “Investors are surging back into the housing market.” “The value of investor loans over the first five months of the year is now 7.2% higher than for the same period in 2011, he added.” Investors are surging back in the market particularly in Brisbane, Perth and Sydney. Value of investor housing rose 26% and investor loans approved raised by 16% in WA. These figures rose over the first five months and it does indicate increasing confidence by investors in housing market.


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According to the latest figures from RESIDEX, Perth house prices fell 4.26% in the June quarter to a median of $467,000-the lowest median price since March 2009.” Interest rate cuts last May and June played a role in undermining confidence in Perth. Although last March, Perth house prices picked up but when the RBA cut rates, it fell down by 1.8% in May and June. We still hope that Perth will pick up because we still expect to have good rate of growth with rental increase.


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Housing starts are expected to rise at a level of 135,280 this year and it will have another modest recovery for the next year 2013 with 141,870. Australian consumers are a bit nervous about the global the domestic economies because it is unsustainable situation these past months. Even the housing starts remain low but WA is ready to bounce back.

According to HIA Chief Economist Harley dale, “We are experiencing a combination of soften housing demand and high-cost housing supply, which together mean that the nation is under-building by a significant amount.” WA is set to bounce back with forecasted growth of between 30-50% this year. Renovations in WA play a role of having a healthy growth and forecasted to increase with 4.2% this year.


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According to one of the industry’s most prominent National analysts, “Perth’s awakening property market will make it the city to watch in Australia this year.”

Research Director at RP Data, Tim Lawless said, “Perth is going to be the market to watch this year and all the indicators are looking positive.  We’re actually seeing some evidence that the market is turning around.

These two statements mentioned-above are some of the indicators that prove that Perth Property Market will heading up. Perth was the only city that properties were selling faster and transaction volumes were rising. Retail buyers and investors were returning to the Perth market and boosting number of property sales really helps Perth Property Market. Rental growth in Perth is quite strong and I think there were improvements in all indicators evidence that Perth Property Market is performing well.

 


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“The National Australian Bank (NAB) Monthly Business Survey showed that business confidence index had dropped one point to negative three points. “ Interest rate cut affects why business confidence fall and employment conditions remain weak. Reserve bank of Australia cut the cash rate by 0.50% points in May and another 0.2% points in June to 3.50%. The rate is unchanged at 3.50% till July board Meeting. I think recent 25 basis points rate cuts provides a little additional support to confidence and NAB forecast that Gross Domestic product will unchanged will the end of the year.


Tags: nab, rba

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According to Australian and New Zealand (ANZ), “The Australian housing market is showing signs of stabilization after a period of softens and barring a global economic calamity, house prices should rise by around 4% to 5% per annum over the next two and a half years.” Low Interest Rates and the possibility of further rate cuts are some factors to encourage first-home buyers back into the market. The volatility house prices in 2012 drives to high end of the market.




Australia’s Central bank announced last week that Interest Rates unchanged. Reserve Bank of Australia held the benchmark cash rate at 3.50% following a cut of 25 basis points in June. I think earlier cuts are starting to have positive impact on the economy, and economists forecasted to continue cutting interest rates. The RBA’s policy-making board next meets on August 7, and hopefully the result would be another cut rate.


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Based on the REIWA figures show that there was a falling of housing stock from 18,000 to 11,973 that brings WA in unstable market. But now, this is the time that we’ve been waited, definitely out of the tough market and this is the start for more buoyant market.

According the Westpac-Melbourne Institute, “Consumer confidence in WA which rebounded sharply in June 2012 in contrast to a small rise at the national level.”

Independent Property Analyst Gavin Hegney said, “Perth was returning to a ‘genuine’ market and was likely to be the top performing capital city this year.

Strong population growth, a tight rental market and low interest rates are indications for a steady market recovery. The strong jobs markets in WA also strengthened further and strong demand for labour means wages are higher in WA, this means that there’s a hope for recovery in housing market. WA’s strong economy was underpinning the real estate bounce back.


Tags: house prices, WA

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According to one property Analytics Group, “Perth’s house prices have exceeded the average property market recovery across Australia’s capital cities in June, marking the largest monthly national inner-city increase in more than two years.” We all know that Perth’s rental market tightened and seen 4.4% increase on rental yields for houses and 4.9% for units. A higher cost of ownerships is one of so many reasons why the rental prices continue to upwards.

Based on the RP Data Research figures,  across all Australian cities property prices recovered by 1%. Property prices increased 2% last month and the median dwelling price up to $460,000. These past six months, a buyer to the property market has improved with sales much stronger in under $600,000 market. Many are expected that property market will increase over the next year.


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