New statistics confirm that Western Australia's property market remains the hottest in the nation, with approvals for new houses largely making up for a noticeable drop-off in multi-dwelling demand.
Overall total housing commitments in September was $1.79 billion, taking the first quarter of the financial year to 26.2 per cent above the same time in the previous corresponding period, the Department of Treasury and Finance has reported.
However, building approvals (1,823 for September) fell 4.3 per cent by number for the quarter, compared to the same three months ending September 30 2004 and 9.9 per cent in the month of Septmber, indicating some moderation in the market.
September mortgage approvals dropped 2.4 per cent to 8186 compared to last year, though the quarter was up 6.4 per cent on 2004.
In the national context, WA was the strongest state across all measures on an annual basis, notably in total housing commitments which were up 24.1 per cent at the end of September.
CCIWA acting chief economist John Nicolaou said WA's housing market remained robust on the back of the state's booming economy and was expected to remain so for the next two years at least.
However, Mr Nicolaou said that the strength of the WA economy was not enough on its own to impact interest rates which had been on hold for some time, despite the falling real estate market in the eastern states.
"In terms of the next interest rate movement I doubt it will be down any time soon," he said.
The state government pointed out the following data:
- a record low unemployment rate of 4.0 per cent in October;
- job vacancies in WA newspapers rising 7.2 per cent in October;
- vehicle sales rising 7.8 per cent in the September quarter;
- population growth above the national average;
- healthy household consumption expenditure up by 6.1 per cent over 2004-05; and
- continuing positive business investment conditions, with Access Economics September Quarter Investment Monitor showing $18.8billion worth of projects under way in WA.
