Western Australia’s property sector continues to outperform those of other states, boosted by the state’s continuing strong economic growth.
Western Australia’s property sector continues to outperform those of other states, boosted by the state’s continuing strong economic growth.
Mortgage sales figures released by the Australian Finance Group, Australia’s largest mortgage broker, show that while the national mortgage market slowed by 1.5 per cent between June and July, in WA there was an 8.6 per cent upturn with $276 million of new loans arranged.
The figures also show that WA had the highest percentage of loans arranged for property investment, with 27 per cent of investment loans, ahead of the national average of 23 per cent.
AFG executive director Malcolm Watkins said WA was moving ahead on the property front.
“It is interesting to note that the total number of mortgages we arranged in WA during July, 1,074, is only 18 per cent less than the total of 1,308 mortgages arranged for New South Wales,” Mr Watkins said.
“Western Australia’s got real legs and it will be the one that continues to buck the trend.”
The Master Builders Association WA also released figures last week showing that WA’s building industry grew faster than any other state during 2004-05.
MBA housing and economic director Gavan Forster said the new figures indicated that new buildings approved for construction (housing and commercial) in WA reached a record $6.24 billion in 2004-05, almost 16 per cent higher than 2003-04.
Residential building approvals were $4.4 billion, while commercial building approvals in 2004-05 reached $1.8 billion.
“This record activity reflects heavily infrastructure spending, not only on large government projects like the Mandurah railway, but a strong preference for housing by private consumers,” Mr Forster said.
Despite a slight cooling in the new home market, activity and confidence among builders remains the highest of all states.
Housing Industry Association WA executive director John Dastlik said the combination of good population growth and a buoyant state economy was keeping WA at the top of the growth charts.
“Builders are reporting that sales and enquiries are at similar levels to last year and prices have remained steady, with interest consistent across first home buyers, trade up buyers and the investment market,” he said.
Mr Dastlik said land availability and sales were strong, despite ongoing price increases, and that completion times and council approval times were consistent with a year ago.
“It is pleasing to hear that despite many negative property stories, builders remain optimistic and buyers are reportedly less concerned about interest rates than earlier in the year,” Mr Dastlik said.
