Published on July 4th, 2012
Confidence on the rise in WA
This week, we caught up with Phil Melville, operations manager for WA at Elders, for the latest local market update.
Phil, who is based in Perth, said that in the rural market, sales activity continues to improve – although prices are still approximately 20 per cent lower than during the same time last year.
The rural market in regional WA was given a boost last month thanks to rainfall, which has created some additional confidence. Phil has also noted an increase in rural lease arrangements compared with previous years.
Meanwhile, he described WA's residential property market as "steady" overall, although in some regional areas, it could be analysed as "steady to improving". Continuing uncertainty surrounding the European financial crisis has had a flow-on effect here at home, he said.
However, the general consensus is that overall confidence in the WA property market is improving – and Phil's comments are in line with the latest research into confidence in the state's residential property industry.
April 2012 figures from the Property Council of Australia and ANZ indicate that confidence in the WA residential sector has risen for the third consecutive quarter – and ANZ head of property research Paul Braddick asserted that 85 per cent of respondents to the Property Council-ANZ Property Industry Confidence Survey anticipate that house prices will either remain stable or improve this year.
The latest property figures indicate that house prices are 8.2 per cent below their peak in March 2008, with Braddick adding that the outlook is positive for the remainder of the year.
Confidence, according to the research, has been buoyed by low vacancy rates for rental accommodation in Perth, which is as low as 1.6 per cent in some areas.
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