RATES CUT TO GFC LEVELS
Tuesday, December 4th, 2012TODAY’S 25 basis points rate cut means the official cash rate is now 3 per cent, the same level as at the peak of the financial crisis. While economists were expecting the Reserve Bank (RBA) to lower interest rates, the cut does highlight a weakened economic outlook. Licensed Valuer & Managing Director of Garmony Property Consultants, Matt Garmony said with many businesses recording reduced profit margins and tightening their purse strings, any increased spending on commercial projects might still be some time off even with the rate cut. However, various recent property statistics indicate subdued to slight increases in residential property values in the major capital cities between ...
Read moreNon-residential Perth property market may continue subdued conditions in early 2012
Wednesday, February 1st, 2012Less than a positive economic forecast, a statement by the Chamber of Commerce and Industry chief economist, John Nicolaou has revised down his September 2011 economic growth outlook for Western Australia to 5.25% growth for the 2011 – 2012 financial year. Although he admits WA’s growth is impressive due to unprecedented investment in the resource sector due to Western Australia’s close links to Asia, predicted slower growth in China will reduce demand for WA’s export commodities. Mr Nicolaou has reiterated “Not all local businesses are experiencing growth. Many small businesses are continuing to do it tough facing poor sales, declining ...
Read morePositive finish to the Perth Property Market in 2011
Wednesday, February 1st, 2012At the end of 2011, the Perth residential property market finished with a positive outlook in an article released by RP Data – Rismark on 30 December indicating “Perth’s house prices jumped by 0.5% in the month of November, leading the first seasonally adjusted increase in capital city house prices since December 2010”, with Australian capital city home values only rising by 0.1%. However on an annual basis, Perth’s home prices were down 3.9% from the previous year. Comments from CommSec chief economist Craig James said “The Reserve Bank’s two interest rate cuts appeared to be having a positive effect”. ...
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