For how many weeks since the RBA cut their interest rate, the rental market in Western Australia is struggling to recover and to cop up. Mining resources slow down so housing market is affected. One of the factors being blamed why is the rental market faced-off because of the slowdown in the resources boom.

According to the Real estate Institute of WA, “Premium rents in Perth have dropped by up to 30% and by up to 40% in the Goldfields and Pilbara. As I have mentioned, mining is the main resources that really affects and influence the rental market. The number of rental home vacancies has double at the moment. The resource has driven the economy, but as we have seen, many people loss their job and find another job to another state and country that resulted a big rent reductions. Interest rate cut plays a big rate to cope up despite of the falling in rent vacancies, but the house is more affordable.

http://www.abc.net.au/news/2013-08-14/boom-slowdown-blamed-for-drop-in-rental-prices/4885662


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The Reserve bank of Australia has cut the interest rate to a 0.25%. The RBA decided to lower by 25 basis points effective August 7, 2013. Was the interest rate cut appropriate? Will really helps to sustain the growth of the economy?

According to CHCWA Executive officer Barry Doyle, “The Reserve Bank of Australia must set interest rate for the entire country but today’s ABS data demonstrates the flaw in the model.” Western Australia economy remains in very accommodative and the economy has been growing.  Australian dollar depreciated but it is possibly help to foster in rebalancing the economy. We still continue to look forward the positive outlook to foster the sustainable growth in demand.

http://www.communityhousing.com.au/abs-data-shows-low-interest-rates-overheating-perth-housing-market/


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According to REIWA, “There has been a 1% fall in the June quarter median house price over the period from May to July. The current median house price now sits at around $520,000.” Because of the small markets and has been a general  softening in sales in April, July sales showed a fall also even those expensive westerns suburbs fall in the overall median.  Median rents in Perth at the moment are stable at $480 for the house and $455 for a unit, apartment and a villa. Therefore, market conclusion for July, Home sales soften but rental market relaxes, based on the data given from REIWA. It really helps to homebuyers to find affordable homes.

http://www.rebonline.com.au/breaking-news/6599-perth-housing-market-softens


Tags: perth rent

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Based on the National Australia bank Commercial Property survey released August 07, 2013, the value of Commercial Property has dropped to -16 points in the June quarter. Possible sectors that triggers to weaken is fewer good rental returns and mining industry still struggling. Retail and industrial sectors are the key drivers that are pushing down with the economy but the value of office properties also softened in the June quarter. If the mining boom will be underpinned, it probably expected to rise. Indeed, the economy is still okay and things will be getting better.

 


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According to Finance Minister Penny Wong, “Record low interest rates are a sign the economy is in transition, not that’s it’s in crisis.” Last Tuesday, RBA has a meeting; Interest rate holds and considered certain to cut rates. Will Interest rate goes lower for the coming months? I think for now, it has a distinct possibility of having a lower cash rate. A quite fall of mining influenced why interest rate remains on hold and business confidence is low. Apparently, we still have positive economy and its not far from awful economy.

http://www.perthnow.com.au/news/breaking-news/oppn-out-of-touch-on-interest-rates-wong/story-fnhrvfuw-1226691859852


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According to BIS Shrapnel study, “Up by 7% on the previous 12 months, 2013 is the year which will mark a recovery in Perth’s property market.” Based on the survey, Perth’s property market could possibly the second highest median house price across all Australian capital cities. This is a very big prediction for Perth’s house prices because we just behind Sydney. WA is the home for mining investors and the market is very stable. Anyhow, we can see the slow modest growth of the market and median price remains as $520,000. Because of the less mining projects, migrants lessen also which really have great impact to house sales and housing market as well. This is only a prediction but if the economic condition remains swinging, I think property market slows down and homebuyers may possibly exit the market.

http://www.watoday.com.au/wa-news/median-house-price-to-top-melbournes-20130630-2p4xd.html

 


Tags: Median Price

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According to reiwa.com data, “There was a 1% fall in the median house price during that period, putting the current median house price at around $520,000.” It shows that the growth prospect is one of the factors that we need to consider in this aspect. For some reasons, these past months, Perth has seen that have increases in median house price and the rental yields. But this July, it has a sales turnover because of the prestigious suburbs market that influence the fall of the overall median price. Perth median house price nowadays are fixed at around $480 for a house and $455 for a unit, apartment or villa. Do you think, median house price is reasonable?

http://www.perthnow.com.au/news/western-australia/perth-house-prices-slide-in-june-quarter/story-fnhocxo3-1226689140287


Tags: Median Price

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