PROPERTY REPORT MARCH 2015
Contents State of the Property Market REIWA Statistics December Quarter 2014 Bespoke Finance Update New Security Legislation for Investors Great Food; Great Cause!
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State of the Property Market by Alan Bourke “Keep your face to the sunshine and you cannot see a shadow” - Helen Keller Why do we talk ourselves into a depression? I read a book a few years ago titled “The Great Depression Ahead”. The book was correctly titled, in that after 45 pages I was depressed, so I put it down and never picked it up again. Here we live in Perth – one of the greatest parts of the world that has performed better than almost every other part of the country and state in recent years. I’m sure many people would love to live here in Perth with our excellent living standards, beautiful climate and friendly welcoming approach. So why are we listening to the negative reports in the media? Let’s choose not to involve ourselves with negative events and news and instead focus on positive news stories about the great achievements we are making as a state. Let’s celebrate the success that Western Australians are known for. Consumer confidence on the rise So far in February we have sold 7 properties above $1M and another 5 above $700,000 - so the astute buyers are back in the market picking up well priced homes. The Westpac Melbourne Institute has released data showing the Consumer Sentiment Index increased by 8% in February to 100.7, up from 93.2 in January. Perhaps this is due to the reduction in interest rates by another 0.25%, along with lower petrol prices and a 9.7% rise in the share price index since January. These results were much stronger than anticipated and represent the first time since February last year that there have been more optimists than pessimists. If you’d like to find out how an optimistic approach to selling can help you, call Bourkes today on 9474 2000.
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REIWA QUARTERLY STATISTICS - DEC QTR 2014
South Perth/Victoria Park: Local Snapshot Median Sale Price: South Perth/Vic Park
For a FREE personalised report based on YOUR property in today’s market, call us today on 08 9474 2000!
Perth Metro
Houses
Units
Listings at Dec Qtr 2014:
Average Selling Days:
South Perth/Vic Park: 564
South Perth/Vic Park: 51
Perth Metro: 12,032
Year to December 2014
1.4 M
1.3 M
1.2 M
1.1 M
1M
900 K
800 K
700 K
600 K
500 K
300 K
1.4 M
1.3 M
1.2 M
1.1 M
1M
KENSINGTON
900 K
MANNING
800 K
VICTORIA PARK
700 K
KENSINGTON
600 K
SOUTH PERTH
500 K
VICTORIA PARK
400 K
COMO
300 K
SOUTH PERTH
400 K
COMO
Perth Metro: 54
December Qtr 2014
House Sales
House Median Price
Unit Sales
Unit Median Price
House Rental per week
House Average Selling Days
Unit Rental per week
Unit Average Selling Days
South Perth/Victoria Park
864
780K
768
520K
488
51
420
69
Como
134
925K
232
520K
495
55
400
49
South Perth
96
1.17M
217
615K
600
67
430
66
Victoria Park
96
689K
130
480K
468
27
360
93
Kensington
70
880K
10
512K
550
55
420
53
Manning
58
838K
460
58
Burswood
14
781K
71
670K
560
61
650
115
Carlisle
113
570K
32
464K
430
68
450
66
East Victoria Park
151
660K
56
471K
480
41
450
51
Karawara
17
735K
445
47
Lathlain
53
755K
445
48
358
312
Salter Point
30
1.15M
650
47
Waterford
32
1.1M
360
72
2
12
339K
Perth/WA: Regional Snapshot Dec Qtr 2014 Preliminary
Sep Qtr 2014 Revised
Median House Price, Perth
$542,000
$550,000
Median Unit/Apartment Price, Perth
$443,500
$440,000
Number of First Home Buyers, WA
23%
25%
Number of House Sales, WA
5,011
7,251
Number of Unit/Apartment Sales, WA
1,078
1,612
54 Days
59 Days
12,032
10,355
Vacancy Rate, Perth
4.2%
4.0%
Median Weekly Rent
$440
$450
Official Cash Interest Rate
2.50%
2.50%
Average Selling Days (Residential), Perth Properties For Sale (End of Qtr), Perth
BESPOKE FINANCE UPDATE At their first meeting of the year the Reserve Bank of Australia (RBA) provided Australian households with a new year’s gift, lowering the cash rate for the first time since August 2013 to a new historical low of 2.25%. With the recent low market sentiment this rate reduction has been a blessing with a spike of activity expected off the back of this change. The banking institutions across Australia quickly followed the Reserve Banks lead, offering historically low fixed and variable rates to new and existing clients. With 3yr Fixed rates at 4.24% and even 5yr fixed rates at 4.39% money has never been cheaper, with the banks doing all they can to encourage their customers to look at their options and revisit the property market.
For finance advice call Chris Hazell from Bespoke Finance Group on 0403 527 440 or email chris@befg.com.au
First Home Buyers who have been struggling of late to enter the market in their very competitive market segment will see this as an added bonus. Not only will their required monthly mortgage requirements decrease, but this decrease in rates also increases their ability borrow, which should provide greater confidence when looking to purchase their first home. There has already been talk of further rate decreases throughout 2015, with the unemployment forecast shifting upwards and Australian growth forecasts weakening. Further rate reductions will add fuel to the already very competitive mortgage market, which can only be of benefit to households around Australia. With interest rates at record lows there has never been a better time to review your financial situation to ensure you are in the best position you could be, both now and for your future.
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COMPANY AND COMMUNITY
#bourkesgivesback Here at Bourkes, we love a celebration and when we need catering we always call Catergirls! www.catergirls.com.au Catergirls provides workplace training to the young women of The Esther Foundation, an award winning residential health, development and leadership program based in South Perth. The Catergirls team consistently provide us with tasty treats and wonderful waitresses. If you live locally and would like to sample their hospitality, pop down to The Esther Café at 16 Preston Street, Como - right next door to the Cygnet Theatre. If you would like to enquire about catering for your next function, contact Shea Colgan on 0407 88 77 33 or email catergirls@estherfoundation.org.au The Esther Foundation itself relies heavily upon the support of donations and volunteers. To find out more about The Esther Foundation and how you can support their work, visit www.estherfoundation.org.au
PROPERTY MANAGEMENT TIPS:
Minimum levels of security: is your rental property compliant? By the 1st July 2015, changes to residential tenancy law (in relation to minimum security levels) will come into effect. The changes include a list of the locks and devices that must be installed in rental premises to make them reasonably secure. These include: •M ain entry door: deadlock or key lockable security screen •O ther external doors: deadlock, patio bolt or key lockable security screen • All windows: internal locks •M ain property entry: external security lighting that is operable from inside
Bourkes are Proud Members of the Prominent Agents Network (PAN), a group of over 30 independent WA real estate agencies.
If you have any questions at all regarding these changes, the minimum requirements or how the changes will affect strata groups, please give our Property Management Department a call on 08 9474 2000. We can also recommend great maintenance workers, locksmiths and electricians so give Bourkes a call today!
This membership allows us to stay at the very forefront of industry innovations, increase our marketing reach (as we can target out-of-area buyers) and expose our team to a wide range of training seminars and workshops. Ultimately, this drives betters sale prices and higher rental returns for our clients. Visit prominentagents.com.au to find out more.
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