Media Release – [date] 2011 PROPERTY MARKET UPDATE – THE YEAR OF THE INVESTOR
Morag Lowe from Port Hedland First National expects the property market to steady further for the remainder of 2011, on the back of a moderating market over the first half of the year due to demand outstripping supply. “This situation expected to only worsen due with increased resources sector investment in the Port Hedland region,” Ms Lowe said in the First National Property Market Outlook Mid Year Update released this week. “Alongside this influx of investment, the State and Federal governments have also committed to expansion of services in Port Hedland with major land and housing project about to being. “This will create enormous economic activity that should impact favourably on the Port Hedland real estate market, especially for investors where market conditions are prime for them to capitalise on lower house prices, increasing rents and improved yields.” In the main, property prices across the board (house, apartment/strata and land) are expected to trend upwards, increasing by between 5 to 10 per cent. “Demand is expected to grow in the latter half of 2011 and huge infrastructure projects earmarked for commencement this year will help boost the market,” Ms Lowe said. Ms Lowe believes the rental market is expected to strengthen, with vacancy rates tightening by between 10 and 20 per cent given there are no current vacancies and huge demand is anticipated. “Strong demand is expected to result in weekly rents trending upwards, increasing by between 10 and 20 per cent as well,” Ms Lowe said. Ms Lowe expects investors to represent the strongest growth in activity, increasing by between 10 and 20 per cent driven by positively geared income guaranteed. “Ultimately, investors will benefit from better rental yields and returns,” Ms Lowe said.
The Government’s move to introduce a carbon tax is not, in the main, supported by First National members. “However, more customers will seek energy efficient features when looking to buy a new home, due to the rising household energy costs and the challenge of maintaining a healthy home budget,” Ms Lowe said. Ms Lowe considers Stamp Duty should be significantly reduced, if not abolished altogether, to stimulate market activity, especially with investors and deliver on the promise of eliminating indirect taxes such as Stamp Duty when the GST was introduced. “However, replacing Stamp Duty with another form of tax, such as a broad-based land tax or death duties should be completely quashed,” Ms Lowe said. “And any talk of abolishing negative gearing should cease immediately.” The exclusion of any of these policy changes from the recently announced WA state budget may be an indication that the Government does not intend to take such matters any further. According to Ms Lowe, the main challenge for the Port Hedland property market is acquiring skilled staff for the real estate sector. “Business growth is going to be dependent on having capable people to meet buyer, seller, renter and landlord needs, which will increase as demand increases,” Ms Lowe said. - copy ends – Issued by: First National Real Estate. For further information or to receive a copy of the 2011 Property Outlook, Morag Lowe from Port Hedland First National on 08 9173 9200