ROY Weston group CEO Geoff Baldwin has predicted that rising petrol prices will ultimately have an effect on the local housing market.
Mr Baldwin said rising petrol prices would further soften the housing market in 2004 because it would reduce the disposable income of families.
“A jump in petrol prices to above $1.15 a litre is the equivalent of a 0.50 per cent increase in interest rates for the average family when you consider that a litre of petrol was under 80 cents a litre just a few months ago,” he said.
“In particular, outer suburbs which have poor public transport links will find that, over the long term, their property values will be negatively impacted by rising petrol costs.
“However, inner Perth suburbs should benefit from rising fuel prices
“There are currently a number of undervalued Perth suburbs which will prove more attractive to homebuyers who wish to reduce fuel costs.”