Aussie to expand WA presence

Mortgage broker Aussie is bullish on the Western Australian property market, with the national operator aiming to add four new stores and more than 20 brokers in the state over the next two years.

Aussie currently has 21 stores in WA and the company believes the local property market is nearing the bottom of its price cycle.

Aussie chief executive James Symond (the nephew of founder John Symond) said market conditions indicated house prices in Perth were set to rise.

“Sales volumes are increasing in Perth against falling advertised stock levels, indicating that supply is drying up, which should translate to higher prices for houses and apartments and more construction activity to fill the demand,” he said

“The silver lining on the value fall has seen a dramatic improvement in housing affordability in Perth, with the typical Perth house now showing a median value of just over $500,000, which is substantially lower than the eastern states.”

The company said it expected to increase from 39 to 60 mortgage brokers in WA in the next two years while adding four stores across the state.

Mr Symonds said there were a number of factors indicating future strength in WA.

“This week’s decision by the Reserve Bank of Australia to hold the cash rate at 1.5 per cent should provide further impetus for the Perth market to turnaround, while the mining industry appears to be becoming a lot more active, which fires up the Western Australian economy”, he said

“We have a great deal of confidence in the future of Western Australian property and believe the dark days are coming to an end.”

Aussie is a wholly-owned subsidiary of the Commonwealth Bank of Australia.