Western Australia Outlook Property Prices 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. The majority of Western Australia survey respondents (63.6 per cent) said house and land prices would remain flat, 18.1 per cent said house prices would fall, and 18.1 per cent said house prices would trend upwards. Around 27.2 per cent said land prices would fall, while 9 per cent said land prices would rise. Prices for apartment/strata properties are anticipated to trend downwards by 54.5 per cent of Western Australia respondents, while 36.3 per cent thought they would flatten and 9 per cent believed they would rise. Movements for this segment were anticipated to be in the region of mostly below 1 per cent.
Rental Market The rental market is expected to strengthen, with vacancy rates tightening and weekly rentals increasing. Perth posted the third highest growth in the residential property rental market nationally with 4.4 per cent. The survey showed 81.8 per cent of WA respondents believed vacancy rates would trend downwards, 9 per cent anticipated they would flatten and 9 per cent said they expected weekly rentals to trend upwards. Movements were anticipated to be no more than 5 per cent. Based on the survey, 90.9 per cent of WA respondents believed rents would trend upwards, increasing mainly by up to 5 per cent, while the remaining 9 per cent believed they would flatten.
Growth Investors are expected to represent the strongest growth in activity driven by increased second buyer activity, better rental yields and easing of bank lending criteria. According to the survey, 72 per cent of WA respondents thought the strongest growth in activity would come from investors, 18.1 per cent thought it would come from upgraders and 9 per cent thought from retirees.
First National Real Estate 2011 Property Market Outlook 35