perth primed for residential property market success
Western Australian's capital city is continuing to show its strength, according to a report recently released by BIS Shrapnel.
The Residential Property Prospects, 2014 to 2017 report notes that remarkably low interest rates have helped property markets across Australia see continued success, with continued growth tipped for years to come.
Those contemplating a building a new home may be encouraged by the latest findings, given that capital growth across Perth dwellings is favourable for the city's homeowners.
Interest rates drive active residential property market
Low interest rates and tight markets have helped Perth maintain a healthy property market over the last 12 months, alongside the likes of Sydney, Melbourne and Darwin.
BIS Shrapnel Senior Manager Angie Zigomanis explained that the existing standard variable interest rate, which is 5.95 per cent, is at a record low.
In fact, other than during the global financial crisis, interest rates haven't been so low in over 40 years. Prices will grow during 2014/15 and to a slower degree in 2015/16. By 2016/17, price declines may come into play across the country, which will offer conditions more conducive to first time buying.
The plan for Perth
Western Australia's capital city experienced a rise in demand for residential property during 2013, thanks to favourable localised economic conditions, low vacancy rates, a lift in dwelling deficiency, strong rental growth and better affordability. The city experienced an 8 per cent rise in house prices during the year.
In the first half of this year, the market has slowed somewhat, given a decline in resource sector investment. Even so, the outlook is still fairly positive.
"Price growth should be modestly positive in 2014/15, but activity in the Perth market is forecast to continue to progressively slow as resource sector investment winds down, impacting employment and income growth," Mr Zigomanis noted.
Even so, the medium term fundamentals in the Perth Property Market remain strong, making new home construction a great option now!