The Urban Development Institute of Australia (UDIA WA) says the latest official cash rate cut to 1% is another step toward a property market recovery in Western Australia as subdued conditions continue to take their toll.
“This cut is a welcome move by the RBA to further support employment growth,” UDIA WA CEO Tanya Steinbeck said.
“We hope this will also increase overall consumer confidence and lead more people to take that step into purchasing a property given the opportunities that are currently available.”
“The health of the property market and subsequently the property industry itself, is critical to the broader state economy,” Ms Steinbeck said.
“The property industry contributed over $21 billion to Gross State Product in 2017-18 and employs 1.3 times more people than the mining industry in WA,” Ms Tanya Steinbeck said.
“More people buying property and supporting the housing market recovery will have a positive flow on effect to the rest of the economy,” Ms Steinbeck said.
“With the Keystart threshold changes taking effect yesterday and the rate cut today, we hope to see more people taking advantage of these conditions,” Ms Steinbeck said.
As the RBA Governor said himself, mortgage rates are at record lows and there is strong competition for borrowers of high credit quality, Ms Steinbeck said.
“I would encourage those considering purchasing a property to shop around and they will most certainly find themselves a great deal,” Ms Steinbeck said.
“Market researcher Colin Keane advised us all last month that Perth land is priced up to $5000 under current market value,” Ms Steinbeck said. “These prices won’t last forever; we know from previous experience with market cycles that we will see prices grow again.”
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