When the demand is high and the supply is low, the price is high. But when the demand is low and the supply is high, the price is low.” In this saying, Perth property market boost because the house prices is high because of the higher demand of property. Mining is the number one factor why the demand is very high in this city. But nowadays, mining slowly down which the housing market affected. Will Perth property market continues to slump?

According the Leasing Agent Annette O’Brien-Oxley, “It was the middle tier of the market that was most affected. We’ve seen a remarkable drop off in demand, so the rents have had to reduce.”  Mining sector slowed down in Perth, so demand is low also that’s why rent vacancies increases. But still, WA have few properties including Perth are available that put pressure to increase the demand.

 

Leasing Agent Annette O’Brien-Oxley said, “A number of them will fully furnished and equipped, so again there will be a big supply and we have to see where the demand is.”

http://www.abc.net.au/news/2014-06-16/high-end-rental-market-slumps-as-mining-boom-tapers-off/5528084


Comments(0)



According to Author Angie Zigomanis, “The Reserve Bank is expected to rise toward the end of 2015 and that coupled with an oversupply of dwellings will cause all markets to weaken by the 2016, 2017 financial year.” Property market tipped for slow down because of the oversupply and a rise in interest rates. As expected, Industrial property tipped for strong growth because of the demand is rising and market supply is falling. Australian market has been very active for the past years and strong house prices has been underpinned a strong housing supply. Property market activity is being boosted and this is one of the considerable factors that developed the opportunities of the market.

http://www.perthnow.com.au/realestate/property-price-growth-tipped-to-slow-by-mid-2016/story-fnhlgp12-1226961498661


Comments(0)



According to Morgan Stanley in the Sydney Morning Herald, “Without further interest rate cuts the current housing cycle is in danger of gradually fading.”  House prices have suffered because of the low interest rate and drop of consumer confidence. But we cannot conclude yet because some of seasonal factors may play a huge role in order to rebalance the market. Although, housing market conditions have softened last May & June but we can see some signs that housing market is approaching the growth cycle. Will housing become affordable? F it will continue to fall, many will suffer and we won’t allow that to happen. Many factors will help the housing market to boom.

http://www.propell.com.au/blog/australian-real-estate/house-prices-to-fall-says-report/


Tags: house prices

Comments(0)



According to IMF Deputy Managing Director Min Zhu, “housing is an essential sector of very country’s economy and has systematic implications, which is why we at the IMF are focusing on it not only individual countries but on a cross country basis.”  Australian house prices are among the top five most expensive in the world. The latest figures from RP Data reveal as at the end of May, Sydney is the highest median dwelling price of $678,500. Darwin is the next highest median price of $560,000 with 9.9% increase every year and followed by Perth which has 5.7% increase to $525, 000. Because of the increase, it doesn’t make the house price sustainable. Housing booms are still being developed and we need to be cautious on property price.

http://www.perthnow.com.au/realestate/australian-house-prices-are-among-the-most-expensive-in-the-world/story-fnhlgp12-1226958813960


Comments(0)



The independent property analyst’s just released report, Perth Housing Boom and Bust 2013/2014, says with conflicting stimuli – such as lower interest rates versus mining downturn – the Perth housing market will “only be for the brave”. The housing cycle may in danger of fading or set to be cool if the interest rate remains stable. Vacancy rate is accelerating and stabilize mining downturn. And it harshly effects to the market. Perth has a solid growth opportunities and this is the indication that Perth is recovering. We only need to be more optimistic in all indicators that we have. No one predicts the market so; we need to keep going what is right.

http://www.perthnow.com.au/news/western-australia/market-forecast-whats-in-store-for-perth-real-estate/story-fnhocxo3-1226666480513


Tags: Perth Market

Comments(0)



According to a Leading Property Industry Analyst and Economic Forecaster, BIS Shrapnel, “The fundamentals are beginning to favor an improvement in residential market conditions.”  The residential markets nationwide are showing signs of strength and having a low interest rate is crucially continued to underpin residential markets. Some of the assumptions are having a competitive economic and business outlook, interest rate movements and trends in rental growth. These are some of the factors may impacting the residential market. In the forecast it doesn’t mean that all cities will improve the conditions. Some cities become tougher and some improves more. Because of the resources of each city, Western Australia will definitely improve because we see the signs of improvement of recovery.

http://www.propell.com.au/blog/real-estate-and-economics/bis-shrapnel-forecasts-two-tier-residential-markets/


Comments(0)



Month of May would mark the peak in price increases for most markets. Many are anticipated and still looking for a rebound in activity. There are a lot of factors triggered why the market has negative impact. Many are speculated that property market bubble. Falling of consumer confidence and low interest rate are factors that bring everyone to pause for thought.

 

According to Former US Federal Reserve Chairman Alan Greenspan, “It was very difficult to definitely identify a bubble until after the fact – that is, when it’s bursting continued its existence.” Australian house prices have continued to rise and stabilize to drift downwards. When the economy weakens house prices may possibly stop driving economic activity. When interest rate starting to move, there is a possibility to have stimulated and sustain economic activity.

http://www.abc.net.au/news/2014-06-12/janda-its-official-property-prices-are-getting-out-of-reach/5517674


Comments(0)



Based on the RP Data repot, there were 50,426 houses sold in Australia’s capital cities for the 12 months to March 31, 2014, which was 7.9% higher than the year before.

We all know that some of the capital cities perform well and recorded greatest annual growth. But Perth’s median house price dipped and house prices fell. Interest rate has caused the cool condition of the market.

 

According to RP Data Research Analyst Cameron Kusher, “The March quarter was the strongest quarter for house sales since 2009 and the strongest for unit since 2010.” The average price plummeting in Perth by 5.9% but Brisbane recorded the greatest annual growth in house sales by 23.6. There will be a possibility to weaken more the market due to stable interest rate. But there will still hope and anticipation to have better property market.

http://www.rebonline.com.au/breaking-news/7743-brisbane-sales-booming-perth-plummeting


Comments(0)



Despite of the rate of price growth slowed in the first quarter of 2014, Australia made it into the top 10 for the annual price growth. Australia is one of the strong house price growths in the world.

 

Based on the latest Knight Frank Global House Price Index puts Australia at seven in the world in terms of house growth in past 12 months. Australia recorded price growth of 10.9% and a big turnaround of housing market made the country to the top. Having low interest rate and strong activity in housing market are the evidences why Australia belong to top 10 countries of world’s best for property price growth.

http://www.perthnow.com.au/realestate/australia-ranks-among-the-worlds-best-for-property-price-growth/story-fnhlgp12-1226942722504


Comments(0)



According to Real Estate Institute of Western Australia President David Airey, “The Perth market peaked in the first quarter of 2014 but dipped in three months to April and then a little further in the month of May.”

 

Perth and Sydney are the two cities were housing affordability improved, Low interest rates attributes the affordability. In Mat, the metropolitan median price at about $548,000 which 0.7% fall in house prices. It shows that affordability continued to be less favorable. Even Perth’s rental market was unchanged but rental vacancy rate continue to staying the same.

http://www.oneperth.com.au/2014/06/04/perth-house-prices-june-2014/


Comments(0)



At its meeting last June 03, 2014, The RBA Board decided to leave the cash rate on hold at 2.5. It shows that interest rate is stable till this 3rd quarter of the year. The global economy growth is in moderate pace. Many factors will be considered why interest rate unchanged. A financial condition is very accommodative and labor market is showing some improvements. The exchange rate remains high and monetary policies foster the sustainable growth.

 

Based on Citigroup Head of Economics Paul Brennan, “The figures show that the economy should rebalance away from being driven by mining investment smoother than previously expected.”

http://www.news.com.au/finance/economy/reserve-bank-of-australia-leaves-cash-rate-on-hold-at-25-per-cent-in-june/story-e6frfmn0-1226941583608


Comments(2)



Housing market conditions have softened business months. It broader trends towards cooling market. House prices have suffered because of a drop in consumer confidence. The latest RP-Data Rismark Hedonic index reveals a 1.9% drop in values nationally in May.

 

According to RP Data Research Director Tim Lawless, “The drops in values are most likely caused by seasonal influences.” Despite the drops in value, Sydney is still one of the most expensive markets in Australia while Melbourne was the market. Will it be the sign seeing the housing market peak the growth cycle?

http://www.perthnow.com.au/realestate/price-drops-could-signal-the-housing-market-is-cooling/story-fnhlgp12-1226939902266


Tags: house values

Comments(0)