Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Lynda Briggs from First National Ellenbrook expects the local property market to moderate for the remainder of 2011, on the back of a rising market over the first half of the year due to stable interest rates providing confidence in the market. “This creates prime conditions, especially for investors to capitalise on lower house prices, increasing rents and improved yields,” Ms Briggs said in the First National Property Market Mid Year Update 2011 released this week. According to the Update, Ellenbrook is a developing area, evidenced by the recent addition of Stage 2 of a major shopping centre and the increase to tenants in the Commercial sector. “In addition, a better facilitated public transport system has seen demand for housing in the area grow,” Ms Briggs said. “Despite being a distance from the CBD, the Ellenbrook area is still affordable and now with increased employment opportunities and improved education and transport facilities, it is becoming even more attractive for home buyers and renters.” In the main, property prices across the board (house, apartment/strata and land) are expected to flatten out with movements kept to between 1 and 5 per cent. “House prices are self correcting following a period of ‘mini boom’ conditions which keep prices flat for the second half of 2011,” Ms Briggs said. “Low demand for apartment/strata property and land will see prices for these two segments trend downwards slightly.” Ms Briggs believes the rental market will strengthen, with vacancy rates tightening by between 1 and 5 per cent given high demand for rentals and low supply. “This will put pressure on weekly rents which are expected to trend upwards, increasing by between 1 and 5 per cent as well,” Ms Briggs said. Growth for the region will come from investors where Ms Briggs believes their activity will increase by between 1 and 5 per cent.
“Investor activity represents the strongest growth in activity for the region, driven by improved market conditions from increased second buyer activity,” Ms Briggs said. “Ultimately, investors will benefit from better rental yields and returns.” 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,” Ms Briggs said. Ms Briggs 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,” Ms Briggs 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, Lynda Briggs from First National Ellenbrook on 08 9297 2733