WESTERN AUSTRALIA OUTLOOK MARKET OUTLOOK Consumer confidence, especially as a result of current and planned infrastructure projects, coupled with better buying conditions, will see the Western Australia property market further stabilise and steadily improve in the coming six months. Kalgoorlie in particular is optimistic about its local property market, and Perth will be one of the strongest in the country. Both sales and property listings are expected to increase in the second half of the year, by 86% of members in each case. The main significant factors members see as influencing the Western Australia property market until the end of the year are interest rates, bank lending criteria, infrastructure plans and changes and job security. There is also concern that global and domestic economies will affect the state’s resources sector – of particular concern for mining and resources dependent areas such as Kalgoorlie. While building approvals have been on the rise, increasing 25 per cent in May, they remain 31 per cent lower than May last year. The state’s strength therefore still depends on the resources sector. With the last decrease in interest rates and the low vacancy rates for rental properties, investors may be influenced to return to the market. However, as with the rest of Australia, there are still some areas of the market that are vulnerable. Property hot spots for the state will be those areas with a median price range around $300,000 or below. Suburbs surrounding Rockingham, Kwinana and Armadale need more support, while Western Australia’s Northwest region with its strong resources will fare well including areas of Onslo, Karatha, Port Hedland and Broome. The key challenges facing local Western Australia property markets are: • Vendor price adjustments to meet market expectations due to lower house prices, especially in some parts of Perth • Availability of suitable properties, especially in Kalgoorlie and some parts of Perth • Banks and securing finance particularly in Kalgoorlie
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FIRST NATIONAL REAL ESTATE 2012 PROPERTY MARKET OUTLOOK – MID YEAR UPDATE