Confidence in WA is rising along with the median price

Wednesday, 3rd Apr 2013
Categories: Market News, Newsletter

Western Australia

People’s fears about the economy are fading quickly and being replaced with an increased sense of optimism, as the property market continues to rise.

Consumer confidence has bounced back in Western Australia, according to the latest Curtin Business School-Chamber of Commerce and Industry (CCI) survey.

The survey confirms what many people already suspected, that people’s fears about the economy are fading quickly and being replaced with an increased sense of optimism. In fact, Western Australians are now more optimistic than they have been for nearly two years.

Survey results show that the proportion of households expecting economic conditions to improve in the next three months had effectively doubled since the last survey. Furthermore, the number of households that think economic conditions will get worse has plunged to a record low of 8%.

CCI chief economist John Nicolaou said households were feeling more confident about their finances after almost two years of consolidation through increased savings and paying down debt.

This is a very good sign for the housing market, which is already seing upward movement. According to the Real Estate Institute of Western Australia (REIWA), the median price in Perth hit $500,000 in the December quarter, higher than originally reported and 6.4% higher than the previous year.

Based on preliminary figures for the first 3 months of 2013, REIWA expect the median price will hit at least $510,000 in the March quarter, which was the previous record high from early in 2010.

The rental market also continues to see growth. In the three months to February, REIWA figures show metropolitan rents increased by 4.4%, lifting the overall median from $450 to $470 per week, which is $60 more than the same time last year.