We provide regular property related news blogs to keep our clients informed of what effect important economic, financial and business events and reports will have of the Perth and Western Australian property market.If you wish to receive our regular blogs:
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RATES CUT TO GFC LEVELS
Tuesday, December 4th, 2012TODAY’S 25 basis points rate cut means the official cash rate is now 3 per cent, the same level as at the peak of the financial crisis. While economists were expecting the Reserve Bank (RBA) to lower interest rates, the cut does highlight a weakened economic outlook. Licensed Valuer & Managing Director of Garmony Property Consultants, Matt Garmony said with many businesses recording reduced profit margins and tightening their purse strings, any increased spending on commercial projects might still be some time off even with the rate cut. However, various recent property statistics indicate subdued to slight increases in residential property values in the major capital cities between ...
Read moreNon-residential Perth property market may continue subdued conditions in early 2012
Wednesday, February 1st, 2012Less than a positive economic forecast, a statement by the Chamber of Commerce and Industry chief economist, John Nicolaou has revised down his September 2011 economic growth outlook for Western Australia to 5.25% growth for the 2011 – 2012 financial year. Although he admits WA’s growth is impressive due to unprecedented investment in the resource sector due to Western Australia’s close links to Asia, predicted slower growth in China will reduce demand for WA’s export commodities. Mr Nicolaou has reiterated “Not all local businesses are experiencing growth. Many small businesses are continuing to do it tough facing poor sales, declining ...
Read morePositive finish to the Perth Property Market in 2011
Wednesday, February 1st, 2012At the end of 2011, the Perth residential property market finished with a positive outlook in an article released by RP Data – Rismark on 30 December indicating “Perth’s house prices jumped by 0.5% in the month of November, leading the first seasonally adjusted increase in capital city house prices since December 2010”, with Australian capital city home values only rising by 0.1%. However on an annual basis, Perth’s home prices were down 3.9% from the previous year. Comments from CommSec chief economist Craig James said “The Reserve Bank’s two interest rate cuts appeared to be having a positive effect”. ...
Read morePerth Reidential Property Market Spring 2011
Monday, December 19th, 2011Recently Licensed Valuer and Managing Director, Matt Garmony gave a presentation to one of the worlds largest banks on the Perth Residential Property Market. The presentation provided and insight into the recent history of market conditions which shaped the current conditions. Some current statistics and opinions and trends and opinions on the future directions. Attached is a copy of the screens shots from the presentation which includes statistics from the Real Estate Institute of Western Australia (REIWA) and the Australian Bureau of Statistics (ABS). Perth Property Market Spring 2011 Presentation
Read moreLand Tax information 2011-2012
Thursday, October 27th, 2011What Land is Taxable? Taxable land is land you owned at 30 June 2011, excluding exempt land. Examples of taxable land include: • vacant land; • residences which are not used by the owners as their primary residence; • ‘secondary’ residences such as holiday homes, holiday units or hobby farms; • rental homes or units; • commercial properties including shops, offices and factories; • land held in trust or owned in a company name; • entitlement to land under any lease or licence from the Crown; • land used for business, commercial, professional or trade purposes under arrangements with the Crown, Crown instrumentalities, local authorities or public statutory bodies. Who ...
Read morePerth’s Office market the best performing sector!
Wednesday, October 26th, 2011The Perth Central Business District (CBD) office rental market is experiencing a strong increase in net rental rates as the vacancy rate for premium and particularly A-grade office tenancies falls. Recent strong demand for office accommodation in the Perth CBD has seen the vacancy rate drop to a reported 3.6% which is critically below equilibrium and it is our understanding the current office projects under constructions will not ease this problem as the total floor space under construction is some 90% pre committed. The licensed valuers at Garmony Property Consultants are seeing a flow-on effect in the fringe CBD office markets, particulaly West ...
Read moreConflicting signals in the property market as the House of Representatives pass the Government’s controversial carbon tax.
Monday, October 17th, 2011The Federal Government House of Representatives passed the Labour Governments controversial carbon tax last week which includes 19 Carbon Tax bills with Prime Minister Julia Gillard stating “Today, is a significant day for Australians and the Australians of the future who want to see a better environment.” The $23 a tonne Carbon Tax will start in mid 2012 before transforming into a true Emissions Trading Scheme (ETES) in mid 2015. Although it was passed in the House of Representatives, opposition leader Mr Tony Abbott pledged on ABC radio on Wednesday “This is a pledging in blood – this tax will ...
Read morePerth Property sellers give up on the market!
Sunday, September 18th, 2011REIWA research has indicated the Perth residential property market has fallen for the 6th consecutive quarter, declining a further 2% since June 2011 where the median house price was $477,000. REIWA indicated its member listings have also fallen in the last 3 months from 17,400 properties on the market for sale at the end of June 2011 to approximately 15,000, with little movement in transaction turnover. “Sellers are simply taking their properties off the market, rather than stock being diminished by sales.” This continued fall in the median house price could be contributed to the increase in First Home Buyer ...
Read moreGreen Star Ratings Add Value
Wednesday, September 14th, 2011A recent report commissioned by the Australian Property Institute and the Property Funds Association of Australia has revealed Green Star-rated buildings and NAMBERS Energy Ratings add value to commercial properties. The Building Better Returns Study found gaining a top level environmental rating can add at least 9% to the value of a building. Commentary from the Australian Property Institute said “the study showed environmental rating schemes were delivery benefits, including lower vacancy and building running costs (outgoings)”. We are of the opinion, the tenant would have lower outgoings and building running costs, thus being able to afford higher net rents for Green buildings, ...
Read more“Value growth slows over past five years” – Summary of RP Data report.
Monday, September 12th, 2011A recent report by RP Data has indicated property value growth has slowed in the past 5 years when compared to the past 10 years. RP Data reported, Perth’s median house price has grown 10.7% per annum for the past 10 years up until July 2011, with inflation only averaging 2.9% over the same period. “Undoubtedly the growth in values has been strong and occurred during a time when access to credit was much easier to obtain and interest rates were inherently lower.” The RP Data report stated. However in the 5 years leading up to July 2006 the average annual value growth for ...
Read moreDoes the European Debt Crisis effect the property market?
Monday, September 12th, 2011Consumer and business confidence is growing increasingly fearful the eurozone cannot deal with the debt crisis with Greece’s potential debt default and the fragility of the European banks being thinly capitalised. Uncertainty of a recovery is the US economy is also causing global concerns. Australia’s unemployment rate is slowly increasing, following recently published data, which may cause the Reserve Bank of Australia (RBA) to cut interest rates by the end of the year. Although this may improve the affordability of home ownership and improve business funding slightly, we are of the opinion the global financial and local unemployment concerns may not improve business ...
Read moreWhen will the Perth’s residential property market bottom out?
Wednesday, August 31st, 2011Recent statistical data released by RP Data today revealed the Perth median house price continued to fall in July to $455,000 which indicates a 6.3% drop from the same time last year. Perth was the second worst performer nationally only to Brisbane. Days on the market for properties that are listed for sale has risen to 55 days up 10 days from 12 months ago. Tim Lawless research Director of RP Data stated “Combined with volatile equity prices, global financial market instability and soft house prices, Australians are understandably reluctant to make high commitment decision at the moment.” In our opinion, although ...
Read morePerth’s property markets continued decline
Wednesday, August 3rd, 2011The Real Estate Institute of Western Australia (REIWA) reported last month that Perth’s median house price fell 2% in the June quarter and has declined for 15 consecutive months and is at the same level as December 2007 at approximately $475,000. This report was confirmed yesterday by Australian Bureau of Statistics (ABS) that Perth’s median house price fell 1% in the month of June and 4.1% for the year which is the highest price fall for an Australian Capital City. This property market decline was also reflected in ABS figures for building approvals which indicated a 3.5% fall nationwide for the ...
Read morePerth’s retail property market under pressure
Wednesday, June 1st, 2011Anxiety over potential interest rate rises, higher utility costs and an increase in on-line shopping have caused softening retail spending. Two House Kitchenware stores in the Perth metropolitan area have been forced to close this week which follows that of large retailers Colorado Group, Ed Harry and Angus & Robinson earlier this year. Consumers appear to becoming smarter with their spending habits by shopping on line for products from cheaper overseas retailers or have tightened their budgets and spending habits after the GFC. However, like retailers, landlords have been subject to rising costs and are wanting rent increases. Garmony Property Consultants, licensed ...
Read morePerth property the worst performer nationally as housing approvals drop
Wednesday, June 1st, 2011It is reported the opposition government is blaming the Gillard government’s uncertainty surrounding the planned carbon tax and rising interest rates for the housing affordability crisis as Australian Bureau of Statistics (ABS) reveals new home approvals have fallen 11.5% since April 2010 nationally and 9.6% in Western Australia. Opposition spokesman Joe Hockey told WA Business News the economic uncertainty “is affecting confidence of the industry and potential buyers”. “This lack of confidence is shown clearly in the slowest growth in housing finance in a generation.” On a local front, RP data’s monthly housing market report has shown Perth is now the nations ...
Read moreOffice Rents are forecast to increase in Perth CBD
Thursday, May 26th, 2011Recent reports on the Perth office leasing market are indicating the vacancy rate is falling and is forecast to drop below 5% by 2014 driven by the expansion of the Western Australian resource sector. The vacancy rate is expected to fall until the major building projects currently under construction are completed in mid 2012. The fringe CBD office leasing market is experiencing a greater take up of vacant space, however rental rates have yet to show significant growth. The licensed valuers at Garmony Property Consultants in Perth assist both landlords and tenants with market rent review valuations and determinations as well as providing independent rental advice ...
Read moreRBA rates on hold even with higher inflation figures.
Wednesday, May 4th, 2011Property owners were spared another interest rate rise yesterday when the Reserve Bank of Australia (RBA) decided to leave the cash rate at 4.75%, with the RBA governor Glenn Stevens stating the recent economic data showed reduce production due to the floods and cyclones. Mr Stevens further stated that longer term inflation can be expected. Many economists are still predicting further rate rises in the later part of the year. In relation to the residential and commercial property market, it is our opinion the current subdued market conditions should continue in the short to medium term, as small business and consumers economic uncertainty ...
Read moreIncreased spending causes inflationary pressure.
Thursday, April 28th, 2011The Reserve Bank of Australia (RBA) reported yesterday that Australia’s Consumer Price Index (CPI)rose by 1.6% in the March quarter increasing the annual inflation rate by 3.3%, with economists predicting similar levels for the rest of 2011. This will undoubtedly cause the RBA to increase official cash rates to keep a hold on inflation. What effect will this have on the Perth property market? The residential and commercial property market is extreemly subdued at present with agents reporting a lack of buyers in the market. An increase or percieved future increase in interest rates will continue the subdued property market conditions and ...
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