Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Paul Brady from First National Real Estate Karratha expects the local property market to moderate for the remainder of 2011, on the back of a falling market over the first half of the year. “This creates prime conditions, especially for investors to capitalise on lower house prices, increasing rents and improved yields,” Mr Brady 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 out with movements kept to between 1 and 5 per cent. Mr Brady believes the rental market will strengthen, with vacancy rates tightening by between 5 and 10 per cent, pushing weekly rentals up by 5 to 10 per cent. Investors are expected to represent the strongest growth in activity for the Karatha region, increasing by between 10 and 20 per cent due to the strong and growing resources sector. “Ultimately, investors will benefit from better rental yields and returns,” Mr Brady said. “The Karatha region is currently experiencing strong population growth and there are plans for major infrastructure investment over the next five years. “Building activity has already commenced to cater for the ongoing population explosion – set to increase from 15,000 currently to 50,000 by 2016. All this will benefit the Karatha property market well into the future.” 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 Brady said. Mr Brady considers Stamp Duty should be abolished altogether, to stimulate market activity, making purchasing more affordable, 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 Brady 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, Paul Brady from First National Real Estate Karratha on 08 9144 2200