Perth house prices set for biggest climb

The median price for a Perth house will pass $600,000 within three years as the city’s property market reclaims its title as the strongest and fastest growing in the country, a new report predicts.

The BIS Shrapnel residential property report forecasts house prices in Perth will climb an average 7 per cent a year for three years, pushing the median price to $610,000 from $500,000 today.

No other capital is expected to enjoy such strong capital growth, with even higher interest rates unlikely to slow the Perth market as much as others.

Senior project manager Angie Zigomanis said even though the Perth market slowed before other cities in 2007, conditions were improving on the back of another resources boom. Money flowing from commodities would soon push up house prices across Perth.

“With prices below peak levels in real terms and income in Perth set to grow substantially as the next round of resource expansion projects get up and running, solid price growth should continue,” he said.

“Nevertheless, further increases in interest rates will prevent the boom in prices that we saw in the last upturn.”

Mr Zigomanis said the median house price would climb 22 per cent by the middle of 2013. This growth would be quicker if the Reserve Bank did not increase interest rates in the next six to 12 months.

Growth at that rate would surpass other capitals such as Sydney (up 20 per cent), Melbourne (11 per cent), Brisbane (12 per cent), Adelaide (20 per cent), Hobart (12 per cent), Canberra (14 per cent) and Darwin (12 per cent).

House prices climbed rapidly through the second half of last year and into the first four months of this year.

Mr Zigomanis said this was directly because of record low interest rates in response to the global financial crisis and a “pull forward” of demand from the first-homeowner’s grant. Not only would house prices outpace inflation, they would affect rents.

“Even though overseas migration inflows are steadily easing, a deficiency of stock is still in place with dwelling construction below underlying trend,” he said.

Recent Australian Bureau of Statistics figures show a fall in loans for people buying homes but an increase in loans for investment properties. Financial market analysts do not expect official interest rates to rise until May next year.

source  :  www.thewest.com.au

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New boom, bigger problems: poll

One in two West Australians believes there will be greater skills shortages and more pressure on house prices compared with the last mining boom, the latest Westpoll has found.

The results revealed 53 per cent of those surveyed thought there would be more pressure on a housing price bubble and skills shortages than last time, while 32 per cent believed there would be the same level of pressure.

Just 9 per cent of those polled said there would be less pressure.

“There is a clear community expectation that there will be quite severe skills shortages in WA and, perhaps of greater concern, a view that there will be an upward pressure on housing prices,” pollster Keith Patterson said.

“This may lead to significant levels of speculation in housing in the anticipation that values will surge as the resources boom unfolds.”

Australian Manufacturing Workers Union secretary Steve McCartney said the community was right to be concerned about increasing prices.

“I think lower paid members of our community should be concerned because sometimes the benefits of those booms don’t filter down to the low-paid workers,” he said.

Construction, Forestry, Mining and Energy Union spokesman Gary Wood said he did not believe there would be more pressure as the WA economy improved.

“There might be the perception put out by the likes of the employer associations so they can attempt to justify the use of overseas labour but it needs to be fully demonstrated they are not just a propaganda war to bring in overseas labour,” he said.

Opposition Leader Eric Ripper said the Government needed to demonstrate a sense of urgency over labour supply, training issues and housing.

“The experience of the last boom was that house prices rose and rents rose and there were skills shortages which made life difficult for small to medium enterprises,” he said.

“The Government is not ensuring that enough housing lots are released.

“The industry is not building enough houses.

“We are storing up a problem for the future.”

Premier Colin Barnett had previously said there was a need to attract more skilled workers to WA and there needed to be more mobility of workers between States.

Deputy Prime Minister Julia Gillard said last month that interstate and international migration was needed to help fill future job vacancies. 

Source  :  www.thewest.com.au

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Forrest Highway opens to traffic

The Kwinana Freeway extension and Forrest Highway has officially opened three months ahead of schedule.

The Minister for Immigration and Citizenship and Senator for Western Australia, Chris Evans, said the new 70.5 kilometre road was one of the largest road infrastructure projects ever undertaken in Western Australia.

Representing the Federal Government at today’s opening ceremony, Senator Evans said the opening marked the culmination of more than five years of work, including almost three years of construction, to deliver this vital piece of infrastructure.

‘It’s a great day for the south-west,’ Senator Evans said at the opening.

‘In particular, I congratulate the Southern Gateway Alliance, as well as the 3000 workers and more than 1000 local suppliers and subcontractors involved in building this road, on a job well done.

‘I would also like to acknowledge the former Federal and State governments for getting the work started on this vital piece of infrastructure for the people of Western Australia.

‘For the first time ever, motorists will be able to travel on a continuous dual carriageway from Perth to the fast-growing communities in the state’s south-west, bypassing the heavily populated areas of Mandurah and Dawesville.

‘The new road will provide better driving conditions and cut travel times by up to 30 minutes for the 30 000 motorists expected to use it each day. It will also take the pressure off other routes, including the Old Coast Road and South Western Highway.

‘Over the longer term, it will promote economic development across the region – which in turn will create even more job opportunities within local communities.’

The $705 million project was jointly funded by the Federal ($330 million) and Western Australian ($375 million) governments.

The Rudd Labor Government is investing $3.4 billion over six years to modernise and maintain the State’s road and rail infrastructure – an investment that will deliver significant benefits for both the Western Australian and national economies.

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WA leads rise in June building approvals

WA has led the charge with a rise in building approvals in June, fresh figures reveal today. 

There was a 21.1 per cent rise in building approvals in WA last month, compared to a national rise of 9.3 per cent.

But the recovery followed an 11 per cent decline in May, taking the latest tally of 11,086 new construction projects to a level lower than where it was in April.

Still, the latest monthly increase was stronger than a market forecast for an eight per cent rise.

Approvals in the volatile apartment-building sector surged 27.7 per cent while detached housing numbers increased by a much smaller 4.9 per cent.

On an annual basis, overall building approvals are down 14.3 per cent.

Apartment building approvals are also 45.7 per cent weaker compared with a year earlier.

Construction activity was also more robust in Victoria, where approvals rose by 17.4 per cent, followed by an 11.3 per cent increase in South Australia.

NSW had a more modest recovery of 3.4 per cent.

Building approvals went backwards in Tasmania, shrinking by 7.6 per cent, and Queensland, which suffered a 1.9 per cent decline.

Source  :  www.thewest.com.au

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Brighton Estate in Butler – One of WA’s biggest construction site

Butler is said to be the biggest construction site outside the mining sector.

The Brighton estate is more than halfway complete, now offering more vacant lots for a total of $8.4 million. The largest block for sale is almost 16,000sqm in Captiva Approach, near Lukin Drive which is $3.25 million. Property developer Nigel Satterley said this block would be zoned mixed business allowing for multi-purpose use.  Another site overlooking the park in Brampton Avenue which is 6664sqm mixed used lot at $2.1 million.

Mr Satterley said the North-West-Metropolitan sector is the third fastest growing area in Australia for housing.  In the Brighton Estate there will be 6300 residential lots and eventually a population of 28,000 people.  It is the biggest project ever to be lodged under the WA Planning Commission’s Liveable Neighbourhood community design codes.  The plan includes 55 parks, artificial lakes, shopping village and community facilities.                                                                                                                     

The other lots up for offer are : 

• 5335sqm on Chipping Crescent, zoned business $1.1 million.
• 3553sqm on Kingsbridge Blvd mix of commercial and residential use classed as centre zone $790,000.
•  More information call 9562 0422 or 0418 953 659

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Civil Estimator? Seeking to relocate/return to Australia?

• High profile national infrastructure group
• Attractive Salary Package $$$

Our client is one of Australia’s leading infrastructure engineering groups, involved in delivering key projects across Australia as well as overseas. They operate in civil, marine, rail, pipelines and mining infrastructure and have a reputation which is second to none.

Opportunities exist for intermediate to senior estimators to join their highly professional team in Sydney, Perth, Brisbane and Melbourne.

These appointments will suit an experienced engineering professional with proven experience in estimating and cost planning of civil construction.

We are interested in talking to enthusiastic Estimators seeking to relocate/return to Australia & who can demonstrate the following:

• Tertiary qualifications in a related discipline
• Solid estimating experience in the construction or building industry with sound costing analytical skills
• Experience in any of the following sectors: Civil, Marine, Rail, Pipelines & Mining Infrastructure
• Proficient in planning, organising and working to time lines
• Strong communication skills and capable of enthusiastically engaging others
Our client offers exciting projects Australia-wide and an opportunity for you to work with like-minded professionals. Working within a team and independently you will make a contribution to your field of expertise.

An attractive salary is on offer with assistance in relocating to Australia. Individuals with visa plans in place or Australian PR/Citizenship will be highly regarded.

If you are relocating to Australia now or the near future and wish to discuss these opportunities further please call Jo Mount in our UK office on +44 (0) 7966 718 442 or Tara McLaughlin in our Australian office on +61 (0)3 9654 9646.
Alternatively send your CV outlining your project experience to date to apply@valuableresources.co.uk.

Take your skills to the world, Go Global at http://www.valuableresources.co.uk
All applications will be treated in confidence.

Source  :  www.expatengineer.net

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Australia stocks close at seven-month high

The Australian share market closed at its highest level in nearly seven months as better-than-expected local and overseas economic data heartened investors and boosted resources stocks.

At the 1615 AEST close, the benchmark SP/ASX200 index had lifted 60.9 points, or 1.56 per cent, to 3955.3, while the broader All Ordinaries index advanced 61.7 points, or 1.59 per cent, to 3949.6 points.

The last time the local market had closed at those levels was in mid-November 2008.

The local bourse rose as a narrowing current account deficit and improving trade position raised expectations that the Australian economy had managed to avoid a contraction in the March quarter.

Building approvals rose for the third consecutive month as low interest rates and grants from the federal government enticed home buyers.

Resources stocks have been lifted by data released by China on Monday showing that China’s manufacturing activity had expanded in May for the third consecutive month.

In the US overnight, better-than-expected readings on manufacturing, consumer spending and construction spending boosted Wall Street.

The Reserve Bank of Australia, which kept interest rates unchanged on Tuesday, also said there was evidence the global

economy was stabilising and the turnaround was clearest in China.                                                                                                                            

City Index markets strategist Alex Douglas said the positive data releases over the last few days were driving the market.

‘If we go back to yesterday, there was positive data from China.

‘That was backed up with some manufacturing data in the States overnight which was slightly firmer than anticipated,’ Mr Douglas said.

Locally, the building approvals figures were also positive.

‘So little bits of evidence like that of growth emerging – that’s helping to support the markets,’ Mr Douglas said.

In the resources sector, global miner BHP Billiton gained 96 cents to $36.70.

Rio Tinto jumped $2.67 to $69.00 after the company announced it had settled terms of iron ore contracts with many Asian customers.

Oil and gas producer Woodside Petroleum rose 88 cents to $44.90 as it said it planned to retain at least 50 per cent equity in the second and third stages of its Pluto liquefied natural gas (LNG) development at Karratha in Western Australia.

Santos firmed five cents to $14.90.

Among the major banks, Commonwealth Bank strengthened 17 cents to $36.33, Westpac surrendered 18 cents to $18.76, ANZ gave away 21 cents to $15.98, and National Australia Bank gained 28 cents to $22.80.

Investment bank Macquarie Group was up 91 cents at $36.30 as it said it was not aware of any reason or information not already announced that could have prompted a lift in its share price since late last week.

On Wall Street overnight, the Dow Jones Industrial Average index rose 221.11, or 2.6 per cent, to 8,721.44.

In the gold sector, Lihir slipped one cent to $3.30, Newmont lost 24 cents to $6.00, and Newcrest picked up 15 cents to $33.89.

The price of gold in Sydney at 1628 AEST was $US973.85 per fine ounce, down $US10.25 on Monday’s close of $US984.10.

Telco Telstra was off two cents at $3.07, and Optus-owner Singapore Telecommunications shed six cents to $2.50.

Retailer Woolworths ascended 60 cents to $26.00, and Wesfarmers, which owns Coles, was $1.09 heavier at $23.37.

In the media sector, News Corp was 25 cents richer at $14.68, and its non-voting stock improved 20 cents to $12.75.

Consolidated Media lifted three cents to $2.38, and Fairfax gained six cents to $1.26.

Among other stocks, automotive brakes supplier Pacifica Group was steady at 13.5 cents after it said the bankruptcy of car-making giant General Motors Corp in the United States was likely to hurt Pacifica’s earnings in 2009.

The top-traded stock by volume was property developer GPT group, with 74.74 million shares worth $36.4 million changing hands.

GPT was 1.5 cents lower at 48 cents.

Preliminary national turnover was 2.43 billion shares worth $5.85 billion, with 657 stocks up, 412 down and 324 unchanged.

Source www.bigpondnews.com

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$236 Million Northbridge Link Project

Prime Minister Kevin Rudd was in Perth yesterday to formally announce the federal  government committing $236 million for the Northbridge Link project. 

The underground construction is estimated to cost about $470 million, with the sitework set to start later this year.

The  construction will be commencing in approximately a years time.

The transformation of the the city precinct will include commercial, residential and entertainment opportunities, which would transform the city.

Added will be a waterfront development which will be the greatest transformation of the city of Perth.

This will connect the city with Northbridge and will result in a better integration of rail and bus services.  

Mr Rudd said the project would create about 350 job opportunities for the construction and business sectors and attract an additional 600 passengers on the public transport network each day.

Tendering will be concluded  later this year and construction due to commence next year.

This is an important contribution to employment as well.

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South Wests New Land Developement

A Vibrant Community World-class wineries, pristine beaches and a plethora of award-winning restaurants, this area has a lot to offer. And it’s about to offer so much more, with a 10-year enhancement strategy set to bring modern comforts to the famous down south lifestyle. Improvements on the golf course are already well underway, with the prestigious Scott Golf Designs reviewing the layout. Also high on the list of new additions is the clubhouse and resort facilities. And while everything looks on par for construction of these luxury inclusions to commence, we haven’t overlooked the most integral part of Dunsborough Lakes the community. Aspen Living is working closely with Swan Care to plan a retirement development with 150 retirement homes, a 60-bed residential care facility and a fully equipped community centre. There’s even a 12acre feature lake and additional native bushes being planted to attract local bird life. The future is looking good for a beautiful, vibrant community at Dunsborough Lakes.  www.dunsboroughlakes.com.au

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