Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Jim Davies from Davies First National expects the Spearwood/Perth property market to moderate for the remainder of 2011, on the back of a falling market over the first half of the year as a result of negative buyer sentiment and banks being cautious in their lending. “This creates prime conditions, especially for investors to capitalise on lower house prices, increasing rents and improved yields,” Mr Davies said in the First National Property Market Mid Year Update 2011 released this week. In the main, house and land property prices are expected to flatten, with any movements kept to a minimum of up to 5 per cent. Mr Davies believes the rental market is expected to strengthen, with vacancy rates tightening, trending downwards and decreasing by between 1 and 5 per cent. “Low vacancy rates will put upwards pressure on weekly rentals which will increase by between 1 and 5 per cent,” Mr Davies said. “Perth posted the third highest growth in the residential property rental market nationally with 4.4 per cent.” According to the Outlook, Upgraders are expected to represent the strongest growth in activity, but investors will return to the market when consumer sentiment improves and banks ease their lending criteria. 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 Davies said. Mr Davies considers Stamp Duty should be abolished altogether to stimulate market activity. “However, replacing Stamp Duty with another form of tax, such as a broad-based land tax or death duties should be completely quashed,” Mr Davies 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, Jim Davies from Davies First National on 08 9418 5555