Perth property prices are expected to continue to fall for the rest of the year 2011 in what could be the city’s worst property recession since before the global financial crisis.
Data released by Australian Property Monitors shows Perth median house and unit prices fell for the third consecutive quarter during the three months to March 2011 and show no sign of stabilising. The median house-price in the metropolitan area declined 1.1 per cent to $540,978, while unit prices fell 0.7 per cent, taking the median price to $363,050.
Perth’s median house-price has now slumped 4.1 per cent – or $22,800 – in the past year, while units have fallen 4.9 per cent ($18,600).
It seems that there are no clear signs yet that the Perth property market has either stabilised or that it has potential to move off the bottom. At least it is unlikely to see price growth till the end of the year of 2011.
However, strong economic growth, including lower unemployment and higher full-time jobs growth and wages could lead to a recovery in the Perth housing market if the negative sentiment that is at the moment keeping the market extremely subdued can turn around.
Yes this is not a good news for property investors as prices of Australian capital city fell 1.8 per cent in the March quarter according to a report. And it needs a strong economic growth & employment ratio, otherwise it’ll be the same.
This is definitely bad news. On the upside, the market does have to bottom out at some stage, meaning there will be great opportunities for investors to get a good deal… On the other hand, it seems the government is putting in some effort to encourage investment in new home construction under the new National Rental Affordability Scheme (NRAS).. Has anybody else heard about NRAS? I know Yaran Property Group in WA look like a good option but I was wondering if anybody can tell me more?