Western Australia
Outlook
The survey of our Western Australia members has shown that there is a growing number of people being forced to sell as a result of mortgage defaults, with 60 per cent of respondents saying these people had increased in numbers. Investors currently account for more than 20 per cent of overall sales for 60 per cent of Western Australia survey respondents; between 10-20 per cent for 20 per cent of respondents; and between 5-10 per cent for 20 per cent of respondents. For the remainder of 2010, the majority of respondents said they did not expect investor activity to change, while 20 per cent said they expected it to increase by up to 10 per cent; and 20 per cent said they expected it to decrease by up to 10 per cent. Interest rates are expected to increase by all respondents, but by varying degrees, between 0.25 per cent up to 1 per cent by the end of the year. For the second half of 2010, sales are expected to increase by 75 per cent of respondents, after experiencing a decline in the first half of the year. House and Apartment Prices Based on the survey sent, 80 per cent of respondents indicated house prices had increased by, on average, up to 5 per cent, although about 20 per cent saw rises of between 10-20 per cent. It was a similar picture for land prices, with 75 per cent of respondents saying land prices had increased by up to 5 per cent. However, respondents were split on apartment/strata property prices with 50 per cent indicating these had increased and 50 per cent indicating they had decreased – but mostly by only up to 1 per cent. In the second half of 2010, the majority of members believed prices for houses and apartment/strata properties would decrease (66.67 per cent and 75 per cent respectively) on average by around 1 per cent, but for some perhaps as much as up to 5 per cent for both property sectors. However, 75 per cent of members expected land prices to increase by, on average, round 1 per cent, with some (25 per cent) predicting increases of up to 5 per cent.
30 First National Real Estate 2010 Property Outlook Mid Year Update