Active winter augurs well for property sector
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Tuesday, 2 October, 2001 - 22:00
A POSTIVE start to the new financial year has been welcomed by the property sector as a sign of better things to come.
The Department of Land Administration’s business activity profiles for July and August show levels of activity that have not been seen in these months since the 1994 boom period.
Average daily document lodgements for July and August, while slightly down on the June figure, were up by 64 per cent and 20 per cent compared with the same period last year.
The average daily document lodgement for July was 1428 and 1323 for August.
Monthly transfer lodgements were also strong, the 7573 transfer documents lodged in July were almost double the number lodged in July last year, and the 7801 lodged in August show a 21 per cent increase on the 6434 lodged in the same period last year.
Chesterton International valua-tions and professional services director David Burgess attributed the higher-than-usual level of activity to the release of pent-up demand that developed during the uncertainty of the past financial year.
“During 2000-01 there was a substantial amount of uncertainty over the GST and interest rates, which placed a substantial amount of property investments on hold,” Mr Burgess said.
“That situation has now been reversed, and with interest rates low and probably heading lower, being coupled with a shaky stock market and first home buyers’ grant, the security of property is again regaining favour among investors.”
Mr Burgess noted the three-month average of the average daily document lodgements for the winter season was 1446, a level of activity not usually enjoyed in the colder months.
Real Estate Institute of WA public affairs director Lino Iacomella said the monthly transfer documents painted a rosy picture for the year ahead.
Mr Iacomella said transfer documents translated into land sales, most of which were residential.
“It is a good start to the financial year, the standout is that July and August are usually slow times … and they have performed much stronger than expected,” Mr Iacomella said.
“These levels for July and August have not been seen since 1994, which is significant because 1994 was a boom year.
“This level of activity is likely to be a forerunner to a stronger end-of-year period, which is when sales are at their best.”
Property Council of WA policy and communications officer Geoff Cooper welcomed the high levels of activity recorded by DOLA but warned proposed changes to the tax system could have a negative effect on the sector.
“The increases in land tax and the new premium property tax could jeopardise the current confidence in the sector,” Mr Cooper said.
“It will also be interesting to see what kind of effect the national and international turmoils of the Ansett collapse and the tragedy in New York will have on local confidence.”
The Department of Land Administration’s business activity profiles for July and August show levels of activity that have not been seen in these months since the 1994 boom period.
Average daily document lodgements for July and August, while slightly down on the June figure, were up by 64 per cent and 20 per cent compared with the same period last year.
The average daily document lodgement for July was 1428 and 1323 for August.
Monthly transfer lodgements were also strong, the 7573 transfer documents lodged in July were almost double the number lodged in July last year, and the 7801 lodged in August show a 21 per cent increase on the 6434 lodged in the same period last year.
Chesterton International valua-tions and professional services director David Burgess attributed the higher-than-usual level of activity to the release of pent-up demand that developed during the uncertainty of the past financial year.
“During 2000-01 there was a substantial amount of uncertainty over the GST and interest rates, which placed a substantial amount of property investments on hold,” Mr Burgess said.
“That situation has now been reversed, and with interest rates low and probably heading lower, being coupled with a shaky stock market and first home buyers’ grant, the security of property is again regaining favour among investors.”
Mr Burgess noted the three-month average of the average daily document lodgements for the winter season was 1446, a level of activity not usually enjoyed in the colder months.
Real Estate Institute of WA public affairs director Lino Iacomella said the monthly transfer documents painted a rosy picture for the year ahead.
Mr Iacomella said transfer documents translated into land sales, most of which were residential.
“It is a good start to the financial year, the standout is that July and August are usually slow times … and they have performed much stronger than expected,” Mr Iacomella said.
“These levels for July and August have not been seen since 1994, which is significant because 1994 was a boom year.
“This level of activity is likely to be a forerunner to a stronger end-of-year period, which is when sales are at their best.”
Property Council of WA policy and communications officer Geoff Cooper welcomed the high levels of activity recorded by DOLA but warned proposed changes to the tax system could have a negative effect on the sector.
“The increases in land tax and the new premium property tax could jeopardise the current confidence in the sector,” Mr Cooper said.
“It will also be interesting to see what kind of effect the national and international turmoils of the Ansett collapse and the tragedy in New York will have on local confidence.”