Western Australia Trends The majority of Western Australia members (57 per cent) believe interest rates will remain unchanged for the remainder of the year, although 43 per cent believe they will still drop further. Naturally this is expected to improve consumer confidence, increase buyer demand, including among investors, and generate stronger vendor activity. Around 71 per cent of Western Australia members expect the number of people applying for fixed rate mortgages to increase over the coming six months, especially in Perth’s Ellenbrook and Central Cockburn regions and the state’s Pilbara, Goldfields/Esperance and Midwest regions. The Entry level market is expected to be the most active sector in the second half of 2013, by 71 per cent of Western Australia members. The remainder believe it will be the Middle Market sector. Solar PV power and ceiling insulation remain the most sought-after energy efficiency features of a Western Australian property by 71 per cent of members and drought resistant gardens by 14 per cent of members.
Commercial 60 per cent of Western Australian commercial property members say the commercial property sector will remain steady, however, Midland and Perth’s Central Cockburn regions may see some activity stimulated as a result of strengthening consumer and business sentiment. 80 per cent of commercial property members in Western Australia say commercial property and rental prices will remain steady, with the remaining 20 per cent saying they will increase. 40 per cent of members say there has been a growing trend for landlords to offer tenants incentives and they expect this to continue into the second half of 2013. The industrial and service sectors of the commercial property market are expected to show the greatest growth for the state’s commercial property market.
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First National Real Estate | 2013 Property Market Outlook Mid Year Update