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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Tenants warned to brace for increased rents

Perth tenants should brace themselves as rising house prices, improving economic conditions and more newcomers to the state combine to force up rents this year, a leading property researcher says.

The latest rental report by Australian Property Monitors shows asking rents in Perth have increased in the first three months of the year.

The median weekly asking rent for houses in the metropolitan area is now $370, a $10 increase on the previous quarter and the first rise in more than a year, while units increased $8, to $358.

But with rising house prices, increased rents have not led to increased yields. The gross yield for houses is now 4.06 per cent, while units are yielding 4.62 per cent.

That leaves Perth ahead of only Melbourne among all state capitals.

APM economist Matthew Bell said he expected Perth rentals to increase a further $10 a quarter for the rest of the year, with a strong resources sector and population growth the driving factors.

But this was unlikely to be fast enough to maintain yields, which would drop slightly as house prices rose further. The median Perth house price is believed to have passed $500,000.

Really, the outlook for both rents and house prices is pretty strong,” he said.

“Yields will probably soften again, but historically they are at pretty good levels.”

Houses were usually bought by investors for capital growth, with units offering better yields, Mr Bell said.

Meanwhile, the Urban Development Institute of Australia said its own research showed a six-month delay in planning approval could add 7 per cent to the price of an average block in the metropolitan area.

UDIA WA chief executive Debra Goostrey said developers were doing what they could to ensure “affordable” land was being made available during a time of increasing prices.

“We also need the support of a fast and efficient planning approvals process to avoid costs associated with delays,” she said.

Her comments follow those last week by property researcher Terry Ryder, who said claims of housing shortages were a beat-up by property industry lobby groups.

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Cheap flights from London Heathrow to Australia via Hong Kong in April, May & June 2010

Cathay Pacific flights sale 2010: Adelaide, Brisbane, Cairns, Perth, Melbourne & Sydney travel deals

Fly via Hong Kong to Adelaide, Brisbane, Cairns, Perth, Melbourne or Sydney in April, May and June 2010 for from £689 return – Cathay Pacific’s flights sale is on until 16 February 2010.

Cathay Pacific Australia flight sale prices: 

Cathay Pacific’s quality makes it worth considering the prices in the Hong Kong airline’s current flights sale. British Airways and Virgin Atlantic have slightly better prices on roughly the same dates, but it is arguably worth paying the extra £20 or £30 – particularly if you fancy a Hong Kong stopover or are flying to cities other than Sydney.

The Cathay Pacific Australia and New Zealand flights sale is on until 16 February 2010. As part of it, return flights from London to Adelaide, Melbourne and Perth via Hong Kong cost from £689, while economy class tickets to Sydney, Cairns, Brisbane and Auckland in New Zealand cost from £699.

Cathay Pacific Australia flights sale: Terms and conditions:

The following are taken from the Cathay Pacific website:

Terms & conditions

• Sale period: until 16 February 2010.
• Fares are for travel from London Heathrow.
• Offer valid on all CX operated flights.
• The above displayed fares are valid for outbound travel in selected dates only: 06April – 15June 2010. For travel in other periods fares may differ.
• Stay: 5 days minimum / 1 year maximum.
• Dates Changes: Outbound- Not Permitted.  Inbound – Permitted GBP50.
• On changing the outbound travel date when permitted, if the itinerary results in a higher fare then difference applies along with the date change fee. If the itinerary results in a lower fare then the date change fee still applies and no refund will be made.
• Name changes are not allowed.
• Cancellations/Refunds: Non refundable. Cancellation fee £200. No-show: nil refund.
• Fares are subject to change without prior notice.
• Other Terms and Conditions apply.
• The fares detailed in the offer/promotion are subject to availability and offered on a first come, first served basis. The limited number of seats for the subject fare allocated to a particular flight may be fully booked although seats are still available in other fare types in the same class of travel.

Note: The fares displayed include taxes, fees and surcharges, which are subject to change at the time of booking due to currency fluctuations. 

Source  :  www.australiaflightbargains.com

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Petrol prices ‘rising’ in next fortnight

Further increases in petrol prices are predicted as Australia’s unleaded benchmark price scaled a 10-month high of almost $100 a barrel in the past week.  

While the continued signs of a recovery in the global economy had been great news for share market investors, the same could not be said for motorists, Commonwealth Securities economist Savanth Sebastian said.

The Australian Institute of Petroleum’s weekly report showed the unleaded petrol prices rose by an average 1.9 cents per litre in the past week to 124.5 cents.

The average metropolitan price rose by 2.6 cents a litre to 124.2 cents, while the regional average price rose by 0.7 cents to 125.1 cents.

“The glut of oil inventory on global markets is not putting downward pressure on prices,” Mr Sebastian said, adding traders and investors were focussed on the recovery story.

Even a strong Australian dollar has not been able to significantly absorb the rally in oil prices.

This resulted in the benchmark for Australian unleaded petrol – the Singapore gasoline price – rising to a 10-month high of $99.70 from $97.33 in the past week.

“If there is any consolation for motorists, it is that the rise in pump prices is likely to be rather sedate,” Mr Sebastian said.

“The petrol price will rise over the next fortnight, but only modestly, up around three to five cents a litre.”

Source  :  www.thewest.com.au

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North Beach property tests property market

THIS North Beach property could confirm whether Perth’s struggling real estate market has turned the corner. 

Real estate experts say that during the height of WA’s property boom the 1346sqm ocean-front house on West Coast Drive would have fetched more than $5 million.

It is for auction on Saturday and the selling price will be a strong indication of whether property prices, especially for top-end homes, have started to recover.

Nexus sales consultant Peter Berridge, who specialises in the North Beach area, said the property would have been highly sought after during the 2006-07 housing boom.

“It’s a nice elevated lot, with a nice frontage. It’s got everything going for it,” Mr Berridge said.

“I don’t think it would be an over-exaggeration to think it might have sold for in excess of $5 million (back then). We were going through an era where it didn’t seem to matter what you paid for it, you were always going to make a packet until the proverbial hit the fan.”

Mr Berridge said he believed values had dropped about 40 per cent since the property peak.

“The last sale was 341 West Coast Drive in Trigg that sold for $2.2 million and it was a very choice piece of land _ something like that could have possibly pulled $4 million in 2007 and I can mention lesser blocks that sold for more than $4 million,” he said.

According to Landgate, North Beach has enjoyed solid property value growth in the past decade.
It recorded a 19.4 per cent average annual growth rate in the 10 years to December 2008. It also recorded strong growth last year and was among the Perth metropolitan area’s Top 10 performing suburbs, with a 17.7 per cent jump in median house prices.

But during this period it recorded a low volume of sales activity, with just 19 homes sold.
This could have skewered the statistics.

“There’s no doubt that the market for premium coastal property has come back since the height of 2007,” Real Estate Institute of WA president Rob Druitt said.

“Indications are that the first signs of recovery are starting to come through now, so there’s certainly a unique opportunity for buyers who are (looking) in that market,” he said.

Mr Druitt said it has been a bottom-up recovery, so if the top end was reasonably priced and sold, it could give a good indication that Perth’s entire property market had seen the worst.

Source  :  www.news.com.au

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Twitter to help beat supermarket monopoly

TWITTER is the new tool being used to fight against high supermarket prices across Australia.

Following the failure of the Federal Government’s Grocery Choice website – set up to help shoppers find the lowest grocery prices in supermarkets around the country – a group of IT experts are using Twitter and Google Groups to develop Price Check, a website they hope will save shoppers money.

Using crowd-sourcing technology, shoppers will eventually be able to log onto the web or via a mobile phone application to find the best-priced supermarket items in their area.

The website will allow shoppers to enter their entire shopping list on the website to find the best prices.                                                                                                     

Users will also be asked to update price items.

“I think I am heavily in favour of an open system and I believe there should be access to the public,’’ idea developer Rob Mason told news.com.au.

“(Users) will be able to enter their postcode … and source products on the site linked to the data base and compare prices and find which supermarket is best-priced.”

Mr Mason said the more the public demand access to cheaper prices, the more likely supermarket giants such as Coles and Woolworths will comply.

He said the response from Twitter users has been “fantastic”.

“If we get people involved and active, we can get all the prices in all the supermarkets,” he said.

“The feedback has been really good; we have gathered as much followers as the big supermarkets.”

Mr Mason said the major supermarkets have a responsibility to be open about their prices.

He admitted if successful, the Price Check idea would be unpopular with the supermarket chains.

“There is absolutely no commercial gain for them to be had by being open and transparent,” he said.

“At the moment it is more of a social thing, supporting an open system rather than saving heaps of money … but there is a potential.”

Follow @price_check for notification of the website launch.

Source www.news.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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Indian Palace Restaurant

THE smell of simmering curry grows stronger with the ascent off the street up to the warmth of the Indian Palace Restaurant in Bull Creek.

Guests will discover with delight that the rich, spiced aroma matches the taste of the food as they choose between vegetable samosas, tikka chicken and shish kebabs for entree.

For mains, one of their house specialties is the butter chicken, which arrives garnished with light almond flakes and sultanas.                                                     

The Bengali fish curry has a strong tamarind flavour and chunks of fresh tomato, and may go well with the rich Indian cheese and spinach dish – the palak paneer. To accompany, there are naans with different fillings such cheese or garlic, and different fruit chutneys and pickles.

With its inviting atmosphere and sensible prices, it is easy to see why Indian Palace is so popular with local families.

The great value extends even further on Friday and Saturday nights with the buffet, which includes such favourites as butter chicken, vegetable korma, Kashmiri dahl and lamb rogan josh. At $29.50 for adults and $14.50 for children, the buffet is the perfect opportunity to taste a range of the special dishes on offer at Indian Palace.

There is also an extensive takeaway menu.

Catering and functions are available upon request, call 9332 2126, or visit Shop 9, 110 Parry Avenue, Bull Creek

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Rent a Holiday Home in Perth

CLICK HERE TO VISIT RENTAL PROPERTY WEBSITE

Set in the quiet residential neighbourhood of Mindarie, this picturesque house is only a minutes walk from a beautiful park and playground, 10 minutes stroll from the lively bars and restaurants found along the boardwalk at Mindaire Marina, and a quick 2 minute drive from door to shore.

What makes this house different, and so much better, than all the other rental properties out there today? Simple. It’s not just a rental property, it’s a home. And because it’s lived in, it will offer you exactly what you’ll be missing when you first touch down in Perth – all of the creature comforts that will make you feel at home.

So whether you are looking for somewhere to stay for your beach side holiday, or just a place to park your suitcases when you first arrive, this house might be just what you’re looking for – the perfect to unwind, relax, explore and settle into a new life in Perth.

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