According to National Australian bank released last July 12, 2012, “Australian Residential Property fell 2% in June quarter with more weighed down especially in Victoria and South Wales.” The Australian National Housing is expected to remain soft in coming year. Based on the report, NSW and Victoria declines house prices with 2.9% drops. WA stills the strongest state and Queensland is the big improver. National house prices fell -2% quarter led by Victoria and the most pessimistic state. But still WA is very optimistic state and house prices situation will improve because homes for sale are very high as well as the rent demand. Housing market is expected to recover maybe in November and respondents still hoping that housing market will boom and become optimistic.

 

Residential Property Survey _June 2012_-2.pdf (188.76 kb)


Comments(0)



According to the latest Housing Industry Association (HIA), “WA was the worst performing state for the month and well ahead of the national drop of 5.5% in the detached housing sector.” The fall comes after 3 consecutive months of rises last June and month of July, house sales including units were weaken. RBA cut rates already and we think it really helped but housing sector getting weaker. It is a good time to build or invest a home because we have competitive market nowadays. Indeed housing investment really helps to boost consumer confidence.


Tags: House Sales, WA

Comments(0)



Based on Macquarie Senior Economist Brian Redican, “The RBA’s sending a very strong message that it’s very relaxed about the second half of this year and their base case is still very positive in the medium term.”

 

The Reserve Bank of Australia (RBA) finds satisfaction on how the domestic economy is progressing. Strong Australia dollar, the mining boom and productivity growth, these are some of the important economic issues on how to read the domestic economy of one country. Despite of the economy optimism, it has a little indication that there might cut interest rate. If that would happen, rate cut is an indication of downside risks.

 


Tags: economy, rba

Comments(0)



Nowadays, residents are choosing to rent rather than to buy. Demand for rental property grows high because of the new migrants. Does increasing of rental property demand really influenced house price?

According to Australian Property Monitors Andrew Wilson, “there are signs the market is recovering and greater buyer confidence is also set to increase in momentum.” There was a modest increase in house price and I think it will continue to rise these coming years. In Perth housing market, there is confidence in it even a little more because median house price now is $536,000 and it certainly increased prices.

 


Comments(0)



According to Westpac Chief Economist Bill Evans, “he was disappointed by the result, given the government’s carbon tax rebates, rate cuts from the Reserve Bank of Australia (RBA), and improvements in retail and employment figures.”  Based on the Westpac-Melbourne Institute Index of Consumer sentiment fell 2.5% in August to 96.6. Although Interest rates really affects the consumer sentiment and based on the index, it seems that consumer’s confidence is in a pessimistic range. I think household conditions influenced the health of the economy and it needs to have over households more optimistic these coming months.


Comments(0)



According to RESIDEX, “The Perth median prices are currently $466,861 which is around $5,000 less than the June 2006 level of $471,441.” Perth house prices rose at early 2008 with $520,928 with the prices action similar to Sydney. The REIWA published last August 02, 2012, for the past 4 weeks they had 997- the total property sales for the Perth compared with the same week last year. It showed that Perth property sales presently increasing with housing sales headed the sales. For the week ending August 1, 2012, numbers of sales for the week increased with 70% which means that purchasing of housing nowadays is faster than last year. We all know that Perth has seen more strong indications that there is a strong growth and one of the strongest states.


Tags: house prices

Comments(0)



Based on the RP Data figures, Investors returning to the property market and frustrated vendors unable to sell their properties have pushed the number of properties advertised for rent to 7057 up from 5732 in July 2011. Last month, there were more than 1000 properties were advertised compared with the same time last year. There were 3403 new listings last month compared last year with 2619 listings. Many owners prefer to rent out their property rather than to sell it.


Tags: rent

Comments(0)



According to David Collyer Campaign Manager for Prosper Australia, “Property strikes calling ‘bottom’-and they will-are misleading homebuyers.” Based on the figures released by the Prosper Australia, 8 capital cities house price indexes shows the property market stagnant and house prices unmoved. Interest rate cuts influenced why the property market will become more attractive. Rental is very tight at the moment, sales volumes continue to fall and the number of so many unsold properties continues to rise, At the moment, this may not be the right time to buy because house prices falls.


Comments(0)



According to REIWA President David Airey, “In Perth, both house and unit sale are up around 5% for the quarter but this has been moderated by softer regional activity during this period, with house sales down an estimated 12% and the small, multi-residential market down by 15%. “ The Perth housing market is swinging back in the favor of sellers and house sales in Perth are up by 15% in 2011-2012.In residential sales are up to 5% but still it cannot reach the average term maybe because of the weak investor activity. Housing market shows signs of improvement and buyers have more confidence now to enter the market. In Perth rental market, vacancy rate goes up that puts pressure on prices but volatility has gone, indeed buyers are more confident and prices are become stable.

 


Comments(0)



 

Last August 08, 2012, National Australia bank released the Property Survey for June 2012. According to the survey, Australian Commercial property dropped to -16 points in June quarter. Values weakened across all sectors these past months but Professionals expected to have good rental returns.

Retail Property values are expected to fall by 1.2% while Industrial sector are expected to drop by 0.9%. Office Properties also softened in June quarter but they are still expected to rise for the coming months. Despite the slump, WA Economy is still optimistic and things will pick up soon and recover.

 

Commercial Property Survey _June 2012_.pdf (188.68 kb)


Comments(0)



The Reserve Bank of Australia (RBA) kept its cash rate at 3.5% after its monthly board meeting on Tuesday. Last May and June, RBA cut interest rate but in the month of July, RBA kept the cash rate on hold.

According to RBA Governor Glenn Stevens in a statement, “”Accompanying the latest rates decision that stance of monetary policy “remained appropriate.” As expected, Economists surveyed already that August meeting would not cut the cash rate. Labor market and unemployment influenced the decision because at the moment, it shows moderate employment growth.


Comments(0)



Across Australia, prices increased 0.5% over the quarter and Perth was the only state capital to record a rise in home prices. Perth rose slightly in over the year by 1.1%.

According to Housing Industry Association Senior Economist Andrew Harvey, “Good earnings growth and Interest Rate cuts may mean the end of the modest correction we have been seeing in house prices.” The slightly increase in home prices indicate a housing price growth and Australia’s housing market remain strong. Rents continue to grow and rental vacancy rate remains tight, these are factors that developed state remains competitive.


Comments(0)



Lenders and major banks has been forecasting that there will be a rate hikes this year. Westpac is one of the major banks believes that RBA will reduce the official cash rate by 1%.

According to Westpac Chief Economist Dr. Bill Evans, “We now expect a sequence of rate cuts beginning with 25 basis points in December 2011 and throughout 2012, totaling 100 basis points prior to a period of steady rate in 2013.” All the three of Australia’s “big four” banks still forecast at least one rate increase from the RBA in the coming months. Commonwealth bank believes that rate cut in a few weeks, NAB expects one in December and ANZ predicts another hike also.


Comments(0)



According to BIS Shrapnel Senior Manager Angie Zigomanis, “The recovery is expected to eventually gain traction through 2013 as continued growth in resource investment spending eventually flows through to otter sectors of the economy.” WA home buyers are expected to become more active as property market will improve and WA is one of the states that are already showing signs of recovery. Perth was forecast to record the highest growth in median house prices and will become more positive and have stabilization of improvement.


Comments(0)



The latest Australian Property Monitors report shows, “Median asking rents for houses in Australia increased nationally by 0.7% while apartment rents went up by 2.5% in the 3 months ending in June.” Rental growth in Melbourne and Brisbane has remained flat over last June with $360 for houses and $380 respectively. Perth median rents have risen over the June quarter with 7.5% to $430 for house rent. The strong growth for Sydney and Perth will cause gross yield increases and become attractive to investors to seek capital gains.


Tags: rent, WA

Comments(0)