Infrastructure, interest rates and falling dollar will drive WA markets in 2015
Media release - 17th December, 2014
- The $116 million refurbishment of Stockland Baldivis is proving a major attraction for home buyers in south-western Perth
- Bayswater is predicted to attract plenty of investor attention in 2015, with entry-level apartments available from $295,000, and gross yields of 5%
- Threats to negative gearing have impacted the Mandurah market, although the prospect of interest rate cuts could strengthen the property market in WA’s second biggest city
The prospect of a cut to interest rates is expected to be good news for real estate markets in Perth, according to leading property group, Raine & Horne.
Mr Raine added that talk of changes to negative gearing were proving far from helpful in investment markets such as Mandurah, although a falling dollar might encourage more overseas investors to consider buying into the Western Australian capital.
“The shopping centre is now up and running with a fully functional Coles, with Woolworths and many other major retailers still to come, and there’s no doubt it’s having an impact on real estate activity.
“Since the Stockland Baldivis reopened 4 weeks ago, about 25% of real estate sales in the City of Rockingham have occurred in Baldivis.
“It’s a classic example of the adage, ‘build it and they will come’ and underlines how infrastructure improvements can underpin real estate values.”
The prospect of more interest rate cuts in 2015 will help drive more action in Perth’s south-west.
“Interest rate cuts will always make a difference in first home owner belt suburbs such as Rockingham, Safety Bay, Baldivis and Warnbro, where it’s possible to secure a 4 bedroom, 2 bathroom home for between $380,000 and $450,000,” said Mr Curran.
“However, there is cause for optimism with the falling Australian dollar sure to help attract more foreign interest in the Perth real estate market,” said Mr Gallagher.
“The falling dollar might also keep more Australians at home this Christmas holiday season, with Western Australia sure to be a major beneficiary. A spike in tourism numbers often translates to more interstate investors buying Perth real estate.”
In 2015, Mr Gallagher predicts that Bayswater will prove a popular real estate market.
“Bayswater is only minutes to the CBD and is well served with road and rail transport,” said Mr Gallagher.
“With entry-level two-bedroom apartments starting from $290,000 and 5% gross yields, I expect that Bayswater will be in the sights of first time buyers and investors in 2015.”
Investors have dominated the Mandurah market in 2014, although ongoing attacks on negative gearing are proving far from helpful.
“The Mandurah market was going gangbusters up until about three weeks ago when the calls for the government to review negative gearing hit a crescendo,” said Peter Vetten, Principal, Raine & Horne Mandurah.
“Investor enquiries have since hit the wall following last week’s release of the Financial System Inquiry Report, which recommended reducing the benefits of negative gearing.”
The prospect of one or two interest rate cuts in the first half of 2015, however, could be just the tonic to encourage more first time buyers into the Mandurah market, according to Mr Vetten.
“Entry-level homes in Mandurah start from $270,000, so further rate cuts could go some way towards strengthening first home buyer demand.
“With more properties for sale, we have plenty of motivated vendors, so early 2015 is shaping as a great time for first-time buyers in particular to make a move into the housing market in our region, where there is great value for their dollar.”
About Raine & Horne
Raine & Horne is an iconic Australian property firm, with more than 300 offices worldwide, including Australia, Asia Pacific and Europe.
Established in 1883, Raine & Horne is a recognised Superbrand that has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Rural and Your Broker.
Executive Chairman and CEO, Angus Raine represents the fourth generation of his family to lead the global real estate brand.
For further media information contact:
Angus Raine, Executive Chairman and CEO of Raine & Horne on 0409 920 697
Andrew Harrington, National Communications Manager, Raine & Horne on 02 9258 5400