29/10/2015 - 05:15

This week's property round-up

29/10/2015 - 05:15

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Consumer sentiment rebounded in October, up a significant 8.4% to 94.8 over the month.

Consumer sentiment rebounded in October, up a significant 8.4% to 94.8 over the month.

This recovery came on the back of soaring iron ore prices during the survey period (early October) – up 24% from its record low in July. Moreover, iron ore shipments in Port Hedland reported the largest volume for the year – a record 39.3 million tonnes in September.

Price expectations for household items were the most positive, up 20.9% over the month, closely followed by a 16.3% increase in sentiment regarding family financial conditions compared to a year ago.

Consumers were also optimistic about economic and family financial conditions in the next twelve months – up (a significant) 15.3% and 1.6% respectively.

The latest CPI figures for the September Quarter indicate a 0.1 percentage point drop in the annual inflation rate for Perth, to 1.1% over the year, which should ensure positive sentiment over household costs.

Nevertheless, downside risks persist from iron ore prices and weak labour market conditions.

Iron ore prices fell to a three month record low over the last week of October (close to the $50 a metric ton mark) following a rate cut and expansionary policy measures in China further weakening its current bearish outlook.

(Source: REIV / REIWA)

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