Confidence the key in property market recovery

THE property industry was one of the most affected by the global financial slowdown, which gripped the state in late 2008 as plummeting global markets and job losses became more and more prevalent.

One of the biggest casualties in the marketplace was consumer confidence, as people reined in spending and hunkered down in anticipation of the downturn deepening.

Cedar Woods Properties managing director Paul Sadlier said the crisis of confidence in the marketplace was one of the biggest stumbling blocks to a recovery in the property industry.

"For the community generally, once we get over this GFC (global financial crisis) and just steady, then the market will start turning again," Mr Sadlier told the forum.

"Things are going on, the demographics are still there, people will have changing needs in their accommodation, and we'll start to see that turn.

"We just need a few months of not too much doom and gloom news out there, and things will start to turn."

Lester Group director Stuart Lester agreed, saying employment and job security were the key factors in restoring confidence.

"Employment is the biggest factor in any economy's growth. It gives people confidence to buy a house.

"Once people are employed the bank will be happy to lend them money," he said.

REIWA president Rob Druitt said there were signs that sentiment was starting to improve on late last year.

"This year they've sort of relaxed a little bit and with a little bit of positive news, or not so much negative news, and that [first home owner grant] boost and first home buyer activity, we've had a kick in the market," he said.

At a government level, the industry believes federal and state governments should fast-track funding for major project and infrastructure work to boost employment.

"We need a fast-tracking of the big construction program that they've got in social housing and in the commercial side. We're seeing some bottlenecks happen in terms of just getting those jobs to site," Master Builders Association director Gavan Forster told the forum.

"WA is very much a resource state with major projects, anything the government can do to keep major projects happening that's got the spin off affect for us," Cedar Woods managing director Paul Sadlier said.