21 Oct VIDEO – RBA about to turn up the heat
Affordability is a key issue for Western Australian property buyers who are currently renting in Perth. A survey by The Western Australian Apartment Advocacy, has revealed 73 per cent said they would consider an apartment for their next move, with a preference for two to three bedrooms. As many as 20 per cent said they were using a bedroom as a study or home office. It also found that 39 per cent had already moved from a house into an apartment. No doubt the downturn in mining led to apartment living becoming more popular, because it was more affordable, and renters were choosing space together with location. The majority of the renters were seeking locations in the CBD and then within a five-kilometer radius of the city. This was supported by the fact that most of the respondents indicated that travel time to work influenced their decision when choosing an apartment. Another important consideration was their proximity to amenities. 91 per cent said that they were in walking distance to public transport, 90 per cent to cafes, 86 per cent to a grocery shop and 84 per cent to services such as hairdressers. Meanwhile – in Brisbane – market uncertainty is deterring prospective buyers from entering the property market there, and many people are willing to put off purchasing a property for at least another two years, according to Place Advisory’s latest Investor Sentiment Survey. Lachlan Walker, from Place Advisory, said there has been a significant change in sentiment, considering 71% of people believed the market was improving four years ago. According to Walker – what is holding Brisbane back is market uncertainty. He added that if we saw some jobs growth and positivity in the economic market, we’d see the property market performing better. Cameron Kusher, head of research at CoreLogic, agreed that jobs growth is what is holding Brisbane’s property market back. The word I am hearing from the banks and brokers is that the RBA is not at all happy about the state of the property market. They say the RBA is going to get tougher. So maybe we will see increased rates and even tougher restrictions on borrowers. Tough times ahead I fear.