Minister wants to flood land market

New Housing Minister Bill Marmion has shocked the property market by saying he wants to flood WA with housing lots to cut home prices.

In a speech to Parliament that has set alarm bells ringing throughout the real estate industry, Mr Marmion said the Barnett Government’s aim was to “bring house prices down”.

“The Department of Land is looking at this issue very closely,” he said.

“It owns land and it is looking at its land stocks and will release as much land as possible.

“That will reduce the pressure on housing supplies. Our aim is to bring the median house price down and to have it lower than the median house price in other States.”

Mr Marmion, who took over the job last month after Troy Buswell was sacked, said the only thing the Government could do to achieve its aim was “release more land and houses”. He refused to elaborate on his comments yesterday.

March quarter figures from RP Data put the median house price in Perth at $480,000, equal to Darwin, but behind Sydney ($500,000) and nation-leading Canberra ($510,800).

Hobart had the cheapest prices in Australia at $323,750.

The State Government established an Office of Land and Housing Supply in Thursday’s Budget and is reviewing available government land which Premier Colin Barnett said would “achieve a comprehensive and co-ordinated approach to housing affordability issues”.

Shadow housing minister Mark McGowan warned the policy could result in houses being worth less than what people paid for them.

“If people go into negative equity with their house, that’s the worst possible outcome,” he said.

Real Estate Institute of WA chief executive Anne Arnold said Australians stored their wealth in the family home and it would be “politically unwise for any government to go down that path”.

But the plan won support from developer Nigel Satterley, who said land needed to become more affordable.

But he said the policy would not cut the price of existing houses.

“We’re on the cusp of a block shortage and whatever the Government can do should be encouraged,” Mr Satterley said.

Analysts at RP Data found in April that houses in Perth’s cheapest suburbs cost at least $60,000 more than those in the most affordable areas in the other major Australian cities.

Hillman was named the cheapest suburb in Perth, with a median house price of $280,000 – higher than the cheapest suburb in Adelaide ($200,000), Brisbane ($205,000), Melbourne ($218,000) and Sydney ($219,000).

Perth had less than 10 per cent of its 259 suburbs with a median house price under $350,000, compared with more than 20 per cent in all other big cities.

Blocks of land in Perth were the most expensive in Australia, according to a recent analysis by RP Data and the Housing Industry Association, with a single square metre of “prime earth” now costing an average of $521.

Source  :  www.thewest.com.au

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Perth median house price to hit $500,000

Perth’s median house price is tipped to hit $500,000 mark in the March quarter amid burgeoning confidence, according to the Real Estate Institute WA. 

It follows a 22 per cent jump in the number of properties for sale in the metropolitan area since December, with a current supply of 12,700 properties. 

The figure includes a welcome boost to the notoriously tight market for vacant blocks, with more than 2000 blocks of land for sale at the end of March. 

It is not the first time recently Perth homes have been linked to a half a million dollar median price, with Australian Property Monitors claiming two months ago that homes in the metropolitan area had already reached this level. 

But it is the first time that the more conservative REIWA has made the prediction.

REIWA President Alan Bourke said the increase in listing showed buyers and sellers believed the worst of the global financial crisis was now behind them. 

Soyrce  :  www.thewest.com.au

 

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WA regional house prices bouncing back

Real estate data for the June quarter has revealed regional house prices in Western Australia have bounced back after dropping sharply in the second half of last year.

The median house price for regional WA grew 6.6 per cent in the past three months, while Perth homes increased by just 2.3 per cent.

The median house price in country areas is now $373,000.

Real Estate Institute of WA president, Rob Druitt, says it is further evidence the housing market is stabilising after last year’s sharp drops.

“The bottom of our market was in the second half of 2008. We’ve now seen a more normalised, stable market,” he said.

“That’s good news for home buyers in the sense they can see interest rates are at 49-year lows, there is some growth there and we can see the market slowly improve from here.”

Source  :  www.abc.net.au

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A Boost for the Housing Industry

The residential construction industry has been assisted by growth in the first time home-buyer activity along with the low interest rate.

Home builders are offering some competitive priced housing, and in the last few months things have started to pick up as we see with the display homes traffic which has increased by around 1000 more visitors a week compared to the same period last year.

With the growing concerns of the recession, some homebuyers are investing in the single storey home which is allowing them to lower their debt, rather than building the two storey home.

The Commercial developments throughout Perth have slowed down, but the ones with less financial risk attached to them are still going ahead.

What is happening is there is a  big demand for the first home buyer homes, therfore a lot of  houses being sold are at this price range therefore bringing down the median house price. 

There are also alternative financing options in WA such as the WA Governments Keystart Home Loans which has helped a lot of new home owners get on the property ladder.

Activity in the residential construction is providing  jobs at time when needed.

The first homebuyer’s stimulus is moving through two stages this year  :

From now until October 1, 2009  $21,000 on a house and land package, or a new house built that  has not been lived in.

$14,000 for an established home.

From October 1 until December 31, 2009 the boost will be lowered to  :

$14,000 for a house and land package, or a new built house that has not been lived in.

$10,500 for an established home.

From January 1, 2010 is to be confirmed.

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