Archive for Investing

Housing affordability has declined in all states and territories, according to a new report.

New report shows housing affordability has declined in Western AustraliaNEW
12 March 2018

The Real Estate Institute of Australia (REIA) have released the findings of its latest Housing Affordability Report, which found housing affordability declined in Western Australia in the December 2017 quarter.

The national report, which is produced in partnership with Adelaide Bank, showed housing affordability had declined across all states and territories, and rental affordability had declined in every state and territory except for Western Australia and New South Wales.

REIA President Malcolm Gunning said a coordinated and aligned approach by all three levels of Government were needed to address the housing affordability issue.

“We need to address this with some urgency and reform the planning and approval process. We need all tiers of Government involved and implementing change.

“REIA believes a first step in this is the appointment of a Minister of Property Services. This would also recognise the importance of the property sector as a driver of economic growth and employment. Property investment supported by historically low interest rates has been a significant contributor to growth in the Australian economy since 2013-14 as we transition away from a decade-long reliance on mining,” Mr Gunning said.

Housing affordability results for WA
There was a mixed bag of results across WA in the December 2017 quarter, with housing affordability worsening over the quarter but improving when compared to the December 2016 quarter.

The report found the proportion of income required to meet loan repayments increased 1.5 per cent to 23.9 per cent in the three months to December 2017 and declined by 0.3 per cent decline compared to the December 2016 quarter.

First home buyers

The number of first home buyers in WA decreased to 3,996 in the December 2017 quarter, a decrease of 9.8 per cent over the quarter but an increase of 4.9 per cent compared to the same time last year.

Of all Australian first home buyers over the quarter, 12.9 per cent were from WA, while the proportion of first home buyers in the state’s owner-occupier market was 34 per cent.

The average loan to first home buyers increased to $316,067, an increase of 4.1 per cent over the quarter but a decrease of 1.5 per cent compared to the December quarter 2016.


The total number of loans (excluding refinancing) in WA decreased to 11,744, a decrease of 4.2 per cent over the quarter and a decrease of 2.7 per cent compared to the same time last year.

The average loan size increased to $352,796, an increase of 6.8 per cent over the quarter and 0.5 per cent compared to the December quarter 2016.

Perth rental market

Rental affordability in WA remained stable during the December quarter, with the proportion of family income required to meet the median rent remaining at 16.4 per cent, the same as the previous quarter but a decrease of 1.3 percentage points compared to the year before.

For more information about the WA property market, visit the WA market page.

Regional WA outperforms Perth for price growth in latest quarter

Regional WA’s overall median house price increased 2.9 per cent during the December 2017 quarter, outperforming the Perth Metro region.

REIWA President Hayden Groves said eight regional centres experienced positive median house price growth, with Karratha the top performer with a 13.5 per cent improvement.

“Busselton, Albany and Esperance also recorded strong price growth, lifting 9.8 per cent, 7.2 per cent and 6.3 per cent respectively.

“Pleasingly, house prices improved across the board, with centres both north and south of Perth showing positive growth. Consumer sentiment in WA improved considerably in the December quarter, up 13.5 per cent which has had a positive flow on effect to the property market. West Australians are feeling more optimistic and buyer enthusiasm is returning,” Mr Groves said.

Kalgoorlie/Boulder, Northam and Port Hedland were the only regions to record declines.

“After recording a significant 19.5 per cent increase in median house price in the September quarter, Port Hedland’s median house price had a minor adjustment in the December quarter,” Mr Groves said.

View the REIWA Regional WA Outperforms Perth for Price Growth

Perth property market begins its recovery in December quarter

Perth property market begins its recovery in December quarterNEW
06 February 2018

The Perth property market ended 2017 on a positive note, with December quarter data showing improvements in median prices, sales activity, listing levels and average selling days.

REIWA President Hayden Groves said it boded well for Perth that all key indicators had improved over the quarter.

“The Perth market found its floor and stabilised in the back half of 2017. We now appear to be entering a recovery phase, though REIWA remains cautious about expectations of rapid growth in the next 12 months,” Mr Groves said.

Median house and unit price
Perth’s preliminary median house price increased 1.2 per cent to $516,000 in the December quarter 2017.

“Once all sales have settled, we expect the final December quarter median to lift to $520,000, which is a notable improvement on the September quarter median of $510,000.

“On an annual basis, the Perth market is very stable. We’ve observed consistent price levels between the December 2016 and 2017 quarters which is a strong signifier the market has turned a corner,” Mr Groves said.

Perth’s median unit price is $405,000 for the December 2017 quarter which is a 1.3 per cent increase on the September quarter.

“It’s encouraging to see Perth’s house and unit medians increase over the quarter because it suggests one sector hasn’t recovered at the expense of the other,” Mr Groves said.

Sales activity
There were 4,946 dwelling sales in Perth in the December quarter.

Mr Groves said this figure was expected to lift to 6,700 once all sales had settled, putting it significantly above the September quarter sales figure.

“Traditionally, the September quarter outperforms the December quarter, but that wasn’t the case in 2017. The December quarter is on track to record 14 per cent more sales than the September quarter,” Mr Groves said.

REIWA analysis shows the composition of sales shifted in the December quarter in Perth, with more transactions occurring above $700,000.

“We’ve observed a surge of activity in Perth’s aspirational suburbs, with buyers recognising there is good opportunity to secure a home in these areas which might have previously been considered unattainable by many,” Mr Groves said.

“This spike in sales above $700,000 has also contributed to Perth’s median house price increasing over the quarter.”

Listings for sale
There were 13,088 properties for sale in Perth at the end of the December quarter.

Mr Groves said this was on par with the September quarter figure and six per cent less than the December 2016 quarter figure.

“There were 800 fewer listings in Perth at the end of 2017 than there was in 2016 and some 1,300 less than there were at the same time 2015. We have consistently seen stock levels decline over the last two years as the market trends towards parity,” Mr Groves said.

“Declining listing levels combined with notable improvements in sales activity has helped restore net-demand. With buyer activity increasing, stock levels are being absorbed faster,” Mr Groves said.

Average selling days
It was 10 days faster to sell in the December quarter than it was in the September quarter, with it taking on average 60 days to secure a sale.

It’s been two years since it was this quick to sell in Perth. The combination of sellers’ preparedness to meet the market and buyer appetite for well-priced property has significantly shortened days-on-market,” Mr Groves said.

View more WA market information

New listing hitting the market in Sorrento.

2 Hermite Rise, Sorrento

Located on a large 801sqm lot is this large two storey family home in the perfect location.

This quality Federation built, double brick and tile home comprises of 5 bedrooms and 3 bathrooms plus a study.

The main living includes open concept meals and family room with garage entry and a functional kitchen with granite bench tops and a scullery window. The adjoining games room opens to the outdoor entertaining area with decking and a pitched pergola. There is a grassed area perfect for a trampoline or family dog.

The home features separates zones, the ground floor compiles of the master bedroom and ensuite, the guest bedroom and study. All children/minor bedrooms are on the second level. Windows on the upper level all have beautiful views of the Sorrento skyline.

Entertain your family and guests in the beautiful underground, crystal-clear pool that’s just screaming to be enjoyed this summer.

Located just minutes from Hillarys Boat Harbor and a short stroll to Perth’s best coastal café strip. Seacrest Park Community Sporting Facility is just down the road and the popular and highly-sought after Sacred Heart College only a 10 minute walk away. This location offers proximity to beautiful beaches with public transport conveniently located at your doorstep.

sacred Heart College is just the other side of the park

There is everything to offer for a family looking to reside with lifestyle…

More features include:
* 5 bedrooms plus study
* 3 bathrooms
* Open plan indoor and outdoor entertaining
* Reverse cycle air conditioning
* Solar panels
* Master suite with ensuite
* Double lock up garage with extra parking for boat or trailer
* Workshop

For more information, please contact Alycee on 0416 188 752.

Read More→

New listing: The Entrance to Paradise

Magnificent gardens and luxurious roses await you beyond the electric gates.
This is a place where you wake up in the morning to the sounds of nature, experiencing a magical moment in your life.
A self-sufficient wonderland – only in Perth could you reside on a 13,000 square meter block with manicured lawns and gardens and still be only a 30 minute drive from the CBD.
But it’s the stillness and peace of mind that will disarm you, which only a property like this can provide.
Impeccably presented family sized home in a semi-rural Eden replete with fruit and nut orchards, vegetable beds and vineyards.
It is like a country /colonial style home with all the modern amenities. The grand formal areas dress to receive the most prestigious visitor.
Reverse cycle air con throughout the house.
This is one home that truly must been seen to be appreciated. Come experience the country charm and to hear the sound of the birds.

• Vast, open-plan kitchen, with adjoining meals/family areas – all high ceilings
• Large master bedroom with adjoining ensuite boasting oversized shower and separate toilet
• The children’s wing has 3 other spacious bedrooms all with built in robes, another complete bathroom and an
activity area. There are 4 toilets in total in the property
• Sunken lounge with a log fire and formal dining room
• Stunning chef’s kitchen with feature granite tops, dishwasher and plenty of storage / bench space and casual
meals area, family room with wood fire
• Separate Games/theatre room with bar
• Study
• A well-appointed laundry with plenty of storage and bench space and its own separate toilet
• Office totally separated from the home with a powder room which can be converted into granny flat/teenagers
• Security alarm system

• Amazing rear yard space with huge all-weather pitched patio area complete with pizza oven and barbecue
• A large gazebo with pitched roof for entertaining
• A massive cellar with sink
• Abundance of native Australian flora and fauna plus fruit and nut orchards, including citrus and stone fruits such as peaches, nectarines, apricots, loquats (agent’s favourite), three varieties of plums, apples, pears, avocados, custard apples (another agent favourite), figs, olives, macadamias and almonds
• A healthy vegetable garden and producing vineyard
• How can you forget the roses? The most amazing quantity of species throughout the garden
• Exterior lights surrounding the property all the way to the vineyard

• Water licence, with 14 stations to maintain the property
• Reverse cycle air-conditioning
• Children’s playground
• 2 cubby-houses/lookout for children and adults
• Two fireplaces
• Solar hot water
• Lock-up electric gate
• Exterior lights around the property
• Couple of large sheds

The worst is likely over for the Perth property market with stable conditions recorded in September quarter

The Perth property market continues to stabilise with preliminary September quarter data revealing steady or improved levels across most key market indicators.

REIWA President Hayden Groves said conditions in the September quarter had mirrored those experienced in the June quarter, which indicated the Perth property market may have finally found its floor.

“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results. Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment,” Mr Groves said.

Median house and unit price
Perth’s preliminary median house price for the September quarter came in at $499,000.

“Once all sales have settled, we expect the revised September quarter median to lift to around $515,000, an increase on the June quarter’s $510,000 median,” Mr Groves said.

REIWA analysis shows Perth’s median house price only experienced a marginal one per cent decline when compared to the same time last year.

“Comparatively, between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent. These longer term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago,” Mr Groves said.

Perth’s preliminary median unit price is $395,000 for the three months to September. data projects this figure will lift to $407,000 once all sales have settled, putting it on par with the June quarter median.

“It bodes well for the market that Perth’s house and unit prices are exhibiting signs of recovery simultaneously,” Mr Groves said.

Sales activity
There were 6,960 property sales in Western Australia in the September quarter.

Mr Groves said this preliminary figure was expected to lift to around 8,000 once all sales had settled.

“In the Perth metro region, property sales increased in the September quarter. Once all transactions have settled, we expect sales to exceed 6000, up from 5,730 in June quarter.

“REIWA analysis shows despite softer market conditions, this quarter’s projected sales figure is not far off the 10 year quarterly average of 6,780. Given the challenging economic factors facing the state, it’s a testament to the strength of our local market that it has held up relatively well through the downturn,” Mr Groves said.

Listings for sale
Stock levels in Perth continue to decline, falling from 14,071 at the end of June 2017 to 13,043 at the end of September.

Mr Groves said after a prolonged period of rising listings across the metro area, it was pleasing to see substantial declines occurring.

“The September quarter listing figure is 7.3 per cent lower than the figure recorded at the end of June and 7.9 per cent lower than the figure recorded at the end of September 2016.

“With sales activity trending up and listing levels declining, this has improved net demand across the metro area and contributed to the healthy sales figures we’ve seen this quarter,” Mr Groves said.


Average selling days and discounting

It took on average 70 days to sell a house in Perth in the September quarter.

“This quarter’s average selling day figure is two days slower than it was in the June quarter, but two days faster than it was in the September quarter 2016,” Mr Groves said.

The proportion of vendors required to discount their asking price improved to 53.4 per cent in the September quarter. This is 1.8 per cent less than the June quarter and 4.5 per cent less than the same time last year.

“It’s pleasing to see fewer sellers needing to reduce their asking price. It means they are listening to the advice of their REIWA agents and pricing their homes competitively from the start, negating the need to discount their original asking price,” Mr Groves said.

See the original article here.


Good opportunity for buyers near Perth’s inner city

Good opportunity for buyers near Perth’s inner city NEW
09 September 2017
Author: REIWA President Hayden Groves

If you were to ask people in Sydney or Melbourne whether it was possible to secure a house – not just an apartment, but a house – within 10 kilometres of the CBD for under $500,000, you’d likely be met with mirth.

Purchasing any property in Sydney or Melbourne for under $500,000 is challenging, let alone finding a property for that price just a few kilometres away from the city. It’s this point of difference that keeps the dream of home ownership alive for many more people in Western Australia than it does in other parts of the country.

For instance, unlike the major markets on the east coast, you don’t need to move miles away from the city to be able to get onto the property ladder. There are numerous suburbs within 10 kilometres of the city that offer fantastic value to savvy buyers and investors.

Perth’s 10 cheapest suburbs within 10 kilometres of the CBD
A recent report by revealed Perth’s 10 cheapest suburbs within 10 kilometres of the city. Nollamara, located 10 kilometres north of the CBD, took out first spot with a median house price of $410,000 for the year to June 2017. This is extraordinarily good value, and doesn’t even factor the suburb’s lower quartile price, which sits at $375,000.

Other suburbs to make the list were Cloverdale, Belmont, Redcliffe, Bentley, Embleton, Osborne Park, Kewdale, Morley and Carlisle. And of these 10 suburbs, seven were located east of the city.

The eastern corridor of Perth’s inner city is a growing area that presents particularly good value. With the Perth Stadium and surrounding infrastructure nearing completion, the opportunity is certainly there for savvy buyers and investors to purchase in a fast growing area at a relatively affordable price.

Get in quick!
We are very lucky here in Perth that there are still great bargains to be had in and around the CBD, but as WA’s population inevitably grows, it is unlikely inner city living will remain this attainable. By 2050, the state’s population is expected to have almost doubled, and as we’ve seen in most major cities around the world, as population density increases so too does the cost of real estate.

The Perth property market currently favours buyers, but property markets are cyclical and conditions will change. With signs emerging that we may have finally found, or be close to finding, the ‘floor’ of our local housing market, I would advise buyers to act sooner rather than later if you’re wanting to secure an affordable house close to the city.

Speak to a local REIWA agent in your area to discuss the options available to you.

Stamp Duty axed for first home buyers!

On June 1st, NSW premier Gladys Berejiklian announced that first home buyers across the state will be exempt from paying stamp duty on existing and new homes up to $650,000. There will also be stamp duty concessions for properties between $650,000 and $800,000.

The changes, which will come into effect 1st July 2017, also include a $10,000 grant for builders of new homes up to $750,000, and purchasers of new properties worth up to $600,000. The previous $5000 New Home Grant Scheme will end.

As part of the reform to address housing affordability, the government has said that the stamp duty charged on lender’s mortgage insurance will also be abolished. For an individual with $50,000 in savings looking to purchase a $800,000 home, this could mean saving approximately $2900.

Foreign investment

In an effort to slow down the competition first home buyers face, foreign investors will now pay double the stamp duty surcharge – from 4% to 8% – and land tax will increase from 0.75% to 2%.


To decelerate investor competition for first home buyers in entering the market, the government will axe the ability for investors to defer paying stamp duty on residential off the plan purchases,

In addition, the State government has committed to increasing the supply of land as a means to tackle the current constraints, adding that $3 billion will be invested in infrastructure.

The exemption, is said to benefit about 25,000 first home buyers every year, with an average of $8000 worth of savings for new or existing homes.

First time I ever got involved renovating a property personally. A lot of work but very rewarding.

My husband did most of the work.
My son Merv was a great help removing the wall paper.
Bob Russell my tradesman, good for A to Z jobs, if you know what I mean, did the painting.
Mike helped with all the jobs and redecorating.

The end result is very good.
For lease now at $385 a week
28 Banks Ave, Hillarys
Behind Whitfords Shopping Centre.
Great location. Possible for commercial use too.

Interest rates this Month unchanged. RBA kept it on hold

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Interest rate update from the RBA today

April 4, 2017

The RBA have decided to keep cash rates unchanged today.


The REIQ welcomes the RBA decision to leave cash rates on hold at the current historic low of 1.5 per cent.

REIQ CEO Antonia Mercorella said the housing market throughout Queensland, and most of the country, would benefit from continued low rates.

“Our economy in regional Queensland is far from strong and giving people access to affordable loans is a key part in strengthening the housing market, which underpins the broader regional economy,” she said.

Conditions in the global economy have improved over recent months. Both global trade and industrial production have picked up. Labour markets have tightened in many countries. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia’s national income.

Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Core inflation remains low. Long-term bond yields are higher than last year, although in a historical context they remain low. Interest rates have increased in the United States and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively.

The Australian economy is continuing its transition following the end of the mining investment boom. Recent data are consistent with ongoing moderate growth. Most measures of business confidence are at, or above, average and non-mining business investment has risen over the past year. At the same time, some indicators of conditions in the labour market have softened recently. In particular, the unemployment rate has moved a little higher and employment growth is modest. The various forward-looking indicators still point to continued growth in employment over the period ahead. Wage growth remains slow.

The outlook continues to be supported by the low level of interest rates. Lenders have recently announced increases in mortgage rates, particularly those paid by investors. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Inflation remains quite low. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent. The rise in underlying inflation is expected to be a bit more gradual with growth in labour costs remaining subdued.

Conditions in the housing market continue to vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades.

Growth in household borrowing, largely to purchase housing, continues to outpace growth in household income. By reinforcing strong lending standards, the recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions. A reduced reliance on interest-only housing loans in the Australian market would also be a positive development.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

10 Perth suburbs selling quicker now than they did during the ‘boom’

29 March 2017

Rossmoyne, North Beach and Mount Lawley are among Perth’s top 10 suburbs selling property faster now than they did during the ‘boom’.

REIWA President Hayden Groves said it was easy to get caught up in general Perth market talk, but it was important to look deeper to see how individual suburbs were performing.

“ analysis shows Perth’s average selling day figure is currently 66 days, which is notably higher than in 2013 when it took on average 41 days to sell a property. However, if we dig a little deeper and look at average selling days at a suburb level, there are numerous areas of Perth selling significantly quicker now than they did in the boom,” Mr Groves said.

Rossmoyne experienced the biggest improvement in average selling days, with data revealing it is now 22 days quicker to sell in the area than it was in the year to January 2014.

“Churchlands, Glen Forrest and Dalkeith are also experiencing faster selling times, with each suburb improving by 15 days in the year to January 2017 compared to the year to January 2014,” Mr Groves said.

Interestingly, eight of the 10 suburbs on the list have an annual median house price (for the year to January 2017) above $750,000, with four of those above the $1 million mark.

“These results show the quickest sales are happening in the suburbs that predominantly cater to the trade-up sector of the residential property market. Buyers looking to take the next step in their property journey clearly recognise there is good opportunity in the current market to take advantage of more affordable house prices to upgrade to a new home,” Mr Groves said.

Glen Forrest and Helena Valley were the only suburbs on the list with a median house price below $750,000, coming in at $534,000 and $557,000 respectively for the year to January 2017.