Interest Rate in Australia is on hold because of the pessimism of economy. Reserved Bank of Australia left the cash rate on hold at 2% during the meeting last July 07, 2015. We observed that the growth is lowered for the average GDP growth. According to REIA President Neville Sanders, “This was good news for home owners and should translate into a sustained period of low interest rate.” Australia Economy is at moderate pace and continued to below long term average rate. High rate of unemployment affects and triggers the inflation to remains flat. Australian dollar has declined also and given the significant declines in commodity prices. The economy is in a long distance from “above trend growth” in which the inflation remains weak. Based on the given facts, I doubt if RBA will get the interest rate down. “With inflation under control, combined with a slowdown in housing finance, it’s reasonable to expect that the RBA will not be increasing interest rates in the medium term, providing a stable outlook for home buyers, “ REIA President Neville Sanders said.


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Prior this quarter, Perth experiences already a bloated rental market. There are thousands of investors especially residential rental but we have outstripping demand. Anyhow, falls in interest rate, slow population growth and oversupply affects the slump. Is it a great time to be a renter?

According to Domain Chief Economist Dr. Andrew Wilson, “There was no indication in rents picking back up. It’s good news for tenants but not so good news for landlords.”

Based on the figures released by Real Estate Marketing group Domain, The average cost of renting a house in Perth has dropped 4.4% in the past 3 months. Rental properties continue to rise and vacancy rate of 4.1%. Who will be blamed? Will it be the resources sector downturn or the first homebuyers? Housing supply continues to rise and demand weaker as migration drops. Rent reduction is now the norm in order to attract tenants. Because of the rental properties sluggish, landlords exerted time to wait in finding a tenant and negotiate for a long time term lease if wanted to see an income.

“So, that surge in demand has weakened now and of course we’ve seen rent’s tracking back to what you might describe as more normal levels,” Dr. Wilson said.


Tags: Rent Vacany

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The Perth property market has recovered from the post-mining slump to grow and now strong up to. The data shows that both the property volume and value remains stable. Median house price dropped 1.3% for the month of June.

According to REIWA President David Airey, “The highlights how very stable the median price has been over the last year, given that the median price was exactly the same in the June quarter 2014.”

Perth house prices have recorded a $5000 fall for June. Despite the drop, Perth market remains stable. Sales volume was down but the number of properties on the market was above average. The modest look is to stabilized and likely to see the continuation to have steady market.


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