According to Chamber of Commerce and Industry WA today released its quarterly outlook downgrading the state’s economic growth to 5.75% in 2013-14 from 65% previously forecast. Australia is mineral rich and mining resources are finite. The demand for raw materials has been a major factor in the Australian dollar strength.

Last July meeting of the Reserve Bank of Australia, Interest rates remain unchanged and this is one factor driven the currency’s strength from a stable economy. I think economy will have more sustainable growth over the longer term if the interest rate will continue to decrease, increasing incomes and strong population growth.

http://www.perthnow.com.au/news/western-australia/wa-economy-faces-slowdown-according-to-chamber-of-commerce-and-industry-wa/story-fnhocxo3-1226684571868


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Based on the increase in new home sales in May, Australia’s market is showing signs of recovery. But the question is, Is this the only factor that driven the recovery? Will these signs continue? Will the economy become better and competitive?

Several factors are generating a tailwind for recovery and it varies from market to market and some factors that driven the other sector to influence another sector. Household formation, low interest rate and the law of supply and demand are the common factors that have to do with the improvement in the market and the economy as well.  In fact, each factor plays different role in the market which have a great impact to the market. Indeed, all things considered but there is evidence that market may turned to recovery.

http://www.propertyguru.com.sg/property-management-news/2013/7/36178/australian-market-shows-signs-of-recovery


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Among all the states, Perth has the solid property price growth. Even the mining boom ending into not good result but that is not the hindrance to make Perth become one of a kind state. The Perth house market has shown prices picking up speed.

A new survey today shows, “Despite of increasing and tough economy, Perth still the negative results and struggling to compete the market but never fail to stop the Perth’s property market reclaiming its mantle as the nation’s best.” Perth house prices forecast that it will continue to rise and have the best value for the coming years. This is more challenging environment to all of us because on how to handle the businesses to become profitable and to improve the economic condition.

http://au.news.yahoo.com/thewest/a/-/newshome/17827605/perth-house-prices-top-nation/


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National Australian bank released a survey last July 2013, the survey showed that Australian are less optimistic about the recovery of economy because homebuyer’s confidence lessen that makes the economy weakens.

Home prices are expected to rise in the coming months.  Rent will probably increase across the country for the coming months as well. The survey showed also that consumer confidence was a little change and the record low on the benchmark rate. But Australian still have hope and still optimistic that by the end of the year, it will goes normal and become strong economy.


Tags: nab survey

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Based on the NAB Residential Survey released last July 11, 2013, House prices are forecast to rise to 1.4% next year and 2.4% for the next two years. All states are expected to increase over next two years, but the strongest expectations are for Western Australia with 3.3% followed by the South Australia with 2.6%. Among all the states, Perth leads the property price increase and Queensland predicted to be the weakest state with 1.7% house price growth over the next two years.

Despite of the weaker expectation, property markets amidst weaker sentiment because of confidence become weaker also. In line with the stronger outlook and positive expectation for over next two years, sentiment in WA is looking high. Indeed, NAB survey’s view show Australian house prices become more optimistic and will have a strong market.

Residential Property Survey _June 2013_.pdf (261.23 kb)


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According to RP Data Research Director Tim Lawless, “The capital gains recorded over the financial year highlight that lower mortgage rates are staring to have a positive impact on the housing market.” The capital values of capital cities are increasing last month of June led by Sydney and Melbourne. The property values was regaining last June by 3.8% financial year up. Among all the capital cities, Perth is one of the capital cities that remain the strongest performing capital city in property market. The confidence levels is still remains high, interest rate still in hold, low rate of unemployment still remain, these are factors that triggers the trend to a bit higher. Indeed, property market is going strong and ongoing recovery in dwelling values.

http://www.propertyobserver.com.au/residential/property-market-rebounds-in-june-with-values-up-38-for-the-2013-financial-year/2013070162857


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According to BIS Shrapnel forecast, “June 2016 Perth will have the third highest capital city median house price-behind Sydney’s $795,000 and Darwin’s $655,000.” This is the forecast in which Perth house prices will increase 15% for coming three years. Nowadays, Perth median price slightly increases which driven the market recovery because of the stronger demand. Demand has been influenced the low interest rates and a strong income growth. Many migrants are coming in Perth, so rental vacancy tightened and strong vacancy rates which dwells and encouraged home buyers and investors to enter the market. Despite of the low turn of Perth market but still is it struggling to recover and heading into a competitive market.

http://www.oneperth.com.au/tag/housing/


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