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There is this...
Perth house prices soar to second most costly
25th July 2006, 14:00 WST
The $406,500 question: When will we overtake Sydney as the nation’s most expensive place to buy property?
DAWN GIBSON
Perth house prices have rocketed past those of Melbourne to become the second highest of the capital cities, figures calculated by WA national property monitor Residex have found.
They showed the median house price in Perth has hit a staggering $406,500, ahead of Melbourne on $379,000. Sydney is the only capital where housing is more expensive, with a median price just shy of $550,000.
The whopping surge in house prices has intensified pressure on the State Government to dip into its bulging coffers to provide tax relief before next year’s Budget, particularly for hard-hit first home buyers struggling to keep up with the spiralling market.
While first home buyers do not have to pay stamp duty on property worth $250,000 or less, real estate agents say they would be extremely unlikely to find a house at that price. The number of stand-alone houses on the market for less than $300,000 has dwindled to almost nothing.
The State Opposition, the Real Estate Institute of WA and the Chamber of Commerce and Industry yesterday renewed their calls for Treasurer Eric Ripper to reduce the property tax burden, which has underpinned an estimated record budget surplus of about $2.3 billion for 2005-06.
REIWA president Greg Rossen said he was not surprised that Perth house prices had surpassed those in Melbourne, saying the question now was whether Perth would overtake Sydney as the most expensive place to buy a house.
He said the Federal Government should more than double the first home owners’ grant to about $15,000 to reflect the increased cost of housing.
REIWA and the Opposition have called for the State Government to index the stamp duty-free threshold for first home owners to reflect the median house price.
Deputy Opposition Leader Troy Buswell said it was time the State Government treated housing affordability as a priority, both in the sense of easing the land shortage and reducing taxes and charges.
“(Treasurer) Eric Ripper has set up a tax review designed to do one thing ”” let him cut taxes at a time when it is politically advantageous to the Government,” Mr Buswell said. “It is not good enough to delay tax cuts for one to two more years so, in the lead up to the next election, Eric Ripper can make tax announcements simply when it is expeditious.”
Last week, Mr Ripper ruled out cuts in stamp duties or payroll tax before next year’s Budget.
and then this...
House prices to soar 20 per cent
Rhys Haynes
July 25, 2006 02:00pm
Article from: The Sunday Times
HOUSE prices in Perth are expected to rise a staggering 22 per cent this year as prices across the eastern states remain largely unchanged.
Mortgage insurer PMI Mortgage Insurance Ltd (PMI) today said residential markets across the eastern states have continued to slow.
``In contrast, the cities of Perth and Darwin have experienced solid price growth, as residential prices continue to be underpinned by stronger demand generated by a booming resources driven economy,'' the PMI Residential Property Overview found.
Median house prices in Perth are expected to soar by 22 per cent to $360,000 this year, with 3.1 per cent and 1.6 per cent increases expected over the following two years.
PMI forecast median house prices in Sydney would fall 2.1 per cent to $517,000 in 2006, 1.7 per cent in 2007 and 2.6 per cent in 2008.
Prices are expected to rise in Sydney by 1.8 per cent in 2009, according to the report.
``With interest rates on an upward trend, affordability is likely to remain a concern in the Sydney market and prices are expected to weaken further,'' the report said.
In Melbourne, the forecasts are a little more positive, with 2.8 per cent growth to the median house price of $370,000 expected in 2006.
Over the next three years growth is expected to be 1.9 per cent, 2.1 per cent and 3.9 per cent.
``Price growth in Melbourne is likely to be limited to rises coinciding with wages growth after an allowance for the rising interest rate environment,'' PMI said.
The Reserve Bank of Australia lifted interest rates by quarter of a percentage point to 5.75 per cent in May this year and most economists are expecting another rate rise as early as next month.
In Brisbane, prices are expected to rise 5.6 per cent this year to $330,000, but PMI said ``house prices in Brisbane appear to have reached their affordability limits''.
It is a different story in the western states, however.
In Darwin, a rise of 19.4 per cent to $334,000 is expected this year and over the next two years prices are expected to be around three per cent in 2007 and unchanged in 2008.
``Markets such as Perth and Darwin are currently experiencing strong demand and booming economic conditions as a result of substantial resource investment spending,'' the report said.
``Due to this strong economic position, it is predicted that significant price growth could continue, with both cities set to experience a growth in median house prices of around 20 per cent in 2006.''
PMI chief executive Ian Graham said that the number of home loans approved for new dwellings had risen over the twelve months to March 2006 by nine per cent.
``We are seeing that first home buyers are starting to come back into the market in greater numbers, albeit from a lower base,'' he said.
``Investor activity has remained flat, with little change in the value of loans to investor purchasers in the nine months to March 2006.''
Both posted on same day. Looks like everyone is guessing.
the worst thing they can do is increase the first home owners grant to $15,000 or reducing stamp duty. This will only increase prices. They need to reduce negative gearing claims and make the CGT discount on property after 7 years instead of twelve months. Alas, this will only occur to them after they feel the wrath of the young and disillusioned at the polls in years to come.
Speaking of that, it's about time we had another revolution. Oh yeah...
Perth house prices soar to second most costly
25th July 2006, 14:00 WST
The $406,500 question: When will we overtake Sydney as the nation’s most expensive place to buy property?
DAWN GIBSON
Perth house prices have rocketed past those of Melbourne to become the second highest of the capital cities, figures calculated by WA national property monitor Residex have found.
They showed the median house price in Perth has hit a staggering $406,500, ahead of Melbourne on $379,000. Sydney is the only capital where housing is more expensive, with a median price just shy of $550,000.
The whopping surge in house prices has intensified pressure on the State Government to dip into its bulging coffers to provide tax relief before next year’s Budget, particularly for hard-hit first home buyers struggling to keep up with the spiralling market.
While first home buyers do not have to pay stamp duty on property worth $250,000 or less, real estate agents say they would be extremely unlikely to find a house at that price. The number of stand-alone houses on the market for less than $300,000 has dwindled to almost nothing.
The State Opposition, the Real Estate Institute of WA and the Chamber of Commerce and Industry yesterday renewed their calls for Treasurer Eric Ripper to reduce the property tax burden, which has underpinned an estimated record budget surplus of about $2.3 billion for 2005-06.
REIWA president Greg Rossen said he was not surprised that Perth house prices had surpassed those in Melbourne, saying the question now was whether Perth would overtake Sydney as the most expensive place to buy a house.
He said the Federal Government should more than double the first home owners’ grant to about $15,000 to reflect the increased cost of housing.
REIWA and the Opposition have called for the State Government to index the stamp duty-free threshold for first home owners to reflect the median house price.
Deputy Opposition Leader Troy Buswell said it was time the State Government treated housing affordability as a priority, both in the sense of easing the land shortage and reducing taxes and charges.
“(Treasurer) Eric Ripper has set up a tax review designed to do one thing ”” let him cut taxes at a time when it is politically advantageous to the Government,” Mr Buswell said. “It is not good enough to delay tax cuts for one to two more years so, in the lead up to the next election, Eric Ripper can make tax announcements simply when it is expeditious.”
Last week, Mr Ripper ruled out cuts in stamp duties or payroll tax before next year’s Budget.
and then this...
House prices to soar 20 per cent
Rhys Haynes
July 25, 2006 02:00pm
Article from: The Sunday Times
HOUSE prices in Perth are expected to rise a staggering 22 per cent this year as prices across the eastern states remain largely unchanged.
Mortgage insurer PMI Mortgage Insurance Ltd (PMI) today said residential markets across the eastern states have continued to slow.
``In contrast, the cities of Perth and Darwin have experienced solid price growth, as residential prices continue to be underpinned by stronger demand generated by a booming resources driven economy,'' the PMI Residential Property Overview found.
Median house prices in Perth are expected to soar by 22 per cent to $360,000 this year, with 3.1 per cent and 1.6 per cent increases expected over the following two years.
PMI forecast median house prices in Sydney would fall 2.1 per cent to $517,000 in 2006, 1.7 per cent in 2007 and 2.6 per cent in 2008.
Prices are expected to rise in Sydney by 1.8 per cent in 2009, according to the report.
``With interest rates on an upward trend, affordability is likely to remain a concern in the Sydney market and prices are expected to weaken further,'' the report said.
In Melbourne, the forecasts are a little more positive, with 2.8 per cent growth to the median house price of $370,000 expected in 2006.
Over the next three years growth is expected to be 1.9 per cent, 2.1 per cent and 3.9 per cent.
``Price growth in Melbourne is likely to be limited to rises coinciding with wages growth after an allowance for the rising interest rate environment,'' PMI said.
The Reserve Bank of Australia lifted interest rates by quarter of a percentage point to 5.75 per cent in May this year and most economists are expecting another rate rise as early as next month.
In Brisbane, prices are expected to rise 5.6 per cent this year to $330,000, but PMI said ``house prices in Brisbane appear to have reached their affordability limits''.
It is a different story in the western states, however.
In Darwin, a rise of 19.4 per cent to $334,000 is expected this year and over the next two years prices are expected to be around three per cent in 2007 and unchanged in 2008.
``Markets such as Perth and Darwin are currently experiencing strong demand and booming economic conditions as a result of substantial resource investment spending,'' the report said.
``Due to this strong economic position, it is predicted that significant price growth could continue, with both cities set to experience a growth in median house prices of around 20 per cent in 2006.''
PMI chief executive Ian Graham said that the number of home loans approved for new dwellings had risen over the twelve months to March 2006 by nine per cent.
``We are seeing that first home buyers are starting to come back into the market in greater numbers, albeit from a lower base,'' he said.
``Investor activity has remained flat, with little change in the value of loans to investor purchasers in the nine months to March 2006.''
Both posted on same day. Looks like everyone is guessing.
the worst thing they can do is increase the first home owners grant to $15,000 or reducing stamp duty. This will only increase prices. They need to reduce negative gearing claims and make the CGT discount on property after 7 years instead of twelve months. Alas, this will only occur to them after they feel the wrath of the young and disillusioned at the polls in years to come.
Speaking of that, it's about time we had another revolution. Oh yeah...
