REIWA June Quarter 2007 Market Update

17/10/07

Visit our Education Centre and check out the REIWA Quarterly review of the Western Australian property market. This report, no less than 37 pages in total, is a very concise look at the WA property market.

It's nice to see First Home Buyers are finally re-entering the market after a very long absence. Rents also, as we've all been hearing in the media, are increasing strongly and hence I think this would be one of the reasons why people, especially First Home Buyers, are deciding to re-enter the market and buy their own home rather than spend all their money paying rent.

Unfortunately though affordability is still very much an issue for people wanting to enter the property market, this forcing some to continue renting as they just can't afford to buy.

It's also nice to see that more people are choosing to live here in our beautiful State, with ABS figures showing Western Australias population for the year to Dec 2006 increased by 42,800 or 2.1% eclipsing Queensland (2.0%) and well above the National averaged 1.4%.

The combined net Overseas and Interstate migration of 26,700 people in 2006 represents just over 500 people a week arriving in WA

The question I'm often asked in the light of the property market being a lot slower this year is "Where are all these people living?"

To be perfectly honest, I'm not really sure. In light of this, many people in the Housing Industry are expecting an increasing level of activity in the Perth Property Market and this can only mean property prices should continue to move forward in the near future as it's not hard to realize that these people need housing. Whether they buy or rent, in my opinion, should be good news for both Property Investors and current Property Owners. Nevertheless, we at Delotto will continuously endeavor to keep making housing affordable to those very important First Home Buyers who unfortunately are being left behind. 

Davide Gullotto