Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Jeremy Bolwell from First National Real Estate Allwest, expects the Bunbury/Australind property market to steady further for the remainder of 2011, on the back of a moderating market over the first half of the year due to plenty of stock being available. “This creates prime conditions, especially for investors to capitalise on lower house prices, increasing rents and improved yields,” Mr Bolwell said in the First National Property Market Mid Year Update 2011 released this week. In the main, property prices across the board (house, apartment/strata and land) are expected to flatten, with any movements kept to below 1 per cent. “There is still an over-supply of houses so it is still too early for prices to increase,” Mr Bolwell said. “There is an abundance of apartment/strata properties and land available with new properties being built and new land releases coming onto the market, which is serving to keep a floor on prices.” Mr Bolwell believes the rental market is expected to strengthen, with vacancy rates tightening, trending downwards and decreasing marginally by up to 1 per cent. “Banks are making it difficult for lenders so there is increased demand for rental accommodation,” Mr Bolwell said. “The mining sector is luring larger numbers of contract staff who are only on 12 month contracts making them less inclined to purchase, and more attracted to renting. “The growing demand for rental accommodation puts upwards pressure on weekly rentals which will increase by up to 1 per cent.” According to the Outlook, investors are expected to represent the strongest growth in activity, increasing by between 5 and 10 per cent driven by improved conditions making it a buyers’ market.
“Investors will benefit from increased second buyer activity and better rental yields and returns in the Bunbury/Australind region,” Mr Bolwell said. The Government’s move to introduce a carbon tax is not, in the main, supported by First National members. “However, more customers will seek energy efficient features when looking to buy a new home, due to the rising household energy costs and the challenge of maintaining a healthy home budget,” Mr Bolwell said. Mr Bolwell considers Stamp Duty should be abolished altogether, to stimulate market activity, especially with investors and deliver on the promise of eliminating indirect taxes such as Stamp Duty when the GST was introduced. “However, replacing Stamp Duty with another form of tax, such as a broad-based land tax or death duties should be completely quashed,” Mr Bolwell said. “And any talk of abolishing negative gearing should cease immediately.” The exclusion of any of these policy changes from the recently announced WA state budget may be an indication that the Government does not intend to take such matters any further. - copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Jeremy Bolwell from First National Real Estate Allwest on 08 9797 1000