Interest rates no barrier

THE outlook for the property market in 2000 looks good despite rising interest rates says Real Estate Institute of WA public affairs director Lino Iacomella.

“I think we have underestimated income growth which is quite strong and has a good impact on the property market,” Mr Iacomella told a recent Austra-lian Property Institute breakfast.

He said the growth in property values had been fairly slow but this was to be expected in a low inflationary environment.

He said interest in the property market had not wavered during the past decade as many had predicted.

“Despite the predictions, despite the plethora of other investments available at the moment, attitudes towards property investment has not changed,” Mr Iacomella said.

He also dismissed an inverse relationship between share values and property values.

“The general feeling is that a drop in the share market will lead to an increase in the property market but the facts don’t bear that out,” he said.

Mr Iacomella said strong property growth was needed to push the share market.

While property prices have increased by little more then the inflation rate, some blue ribbon areas had continued to grow strongly, he said.