Trust that returns to WA's real estate sector despite house prices falling


Confidence in WA's real estate market is now the second highest in any state or territory in Australia, a new survey found, despite falling house prices in Perth.

The new data collected for the ANZ / Property Council Survey – which measures the sentiment of the sector – found that the WA real estate market has exceeded the index by nine points since May, eventually leading to a decline of one year.

Only South Australia has exceeded the 134 points of the WA index for the September quarter, which was six more than the national average of 128.

Sandra Brewer, executive director of Property Council WA, said the results are encouraging for WA.

"Our four-quarter run of confidence decline has ended and all key indicators are now returning in the right direction," he said.

He said that expectations of falling for Washington's economic growth in the June quarter have also rebounded and is now the highest in any jurisdiction for the next 12 months.

The state government has strengthened the loans through the Keystart program.

The state government has strengthened the loans through the Keystart program.

This trend reversal was probably driven, Ms Brewer said, from a reversal of industry expectations regarding the availability of debt financing for the coming year.

"These promising signs have seen a small proportional increase in expectations of the work plan ahead which, if implemented, will result in more jobs for Western Australians," he said.

"In the residential sector, we have witnessed a much more moderate, but still significant, change in capital growth expectations in housing prices over the next 12 months, which have also returned to positive territory."

Positive indicators come in between new research which has shown that more than three out of ten homes are sold with large losses up to $ 115,000 compared to the original purchase prices.

RP Data Core Logic revealed nearly 30% of homes and almost half of all units in the Perth metropolitan area were sold at a loss in the first quarter of the year.

Perth real estate values ​​slipped by 0.7% in June. Prices have fallen by 2.1 percent in the last three months, by 9.1 percent in the last year and are now almost 20 percent below their peak in 2014.



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