Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Greg Devereaux from First National Real Estate Kelmscott expects the property market to strengthen for the remainder of 2011, on the back of a rising market over the first half of the year as a result of increased sales volumes. “This creates prime conditions, especially for investors to capitalise on lower house prices, increasing rents and improved yields,” Mr Devereaux 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. “House prices have self-corrected, luring buyers back onto the market and increasing activity,” Mr Devereaux said. “However, the market is still dealing with an over-supply of apartment/strata properties as a result of the last boom – which may result in small drops for this segment. “Land prices have flattened out due to limited new land developments coming on stream.” Mr Devereaux believes the rental market will strengthen, with vacancy rates tightening by between up to 1 per cent, with weekly rentals up by between 1 and 5 per cent as a result of a shortage of supply of good rentals. First home buyers are expected to represent the strongest growth in activity for the Kelmscott region, however investors are set to benefit from improved rental yields. “Investor activity is expected to increase, marginally, by up to 1 per cent – the slow down due to properties being seen as over-priced by this segment,” Mr Devereaux 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 Devereaux said.
Mr Devereaux 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 Devereaux 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, Greg Devereaux from First National Real Estate Kelmscott on 08 9495 1212