West Australians are leading a nationwide drop in sentiment towards the housing market.
NAB’s quarterly survey of the property sector, released this morning, showed a sharp fall in sentiment with WA the weakest State housing market in the country.
The bank found West Australians expect State house prices to climb by just 0.2 per cent over the next 12 months. Over the next two years, West Australians believe prices will climb by 0.9 per cent.
Both are the lowest expected rises in any State.
The strong State is Queensland where prices are tipped to climb by 2.3 per cent over the next 12 months and by 3 per cent over the next two years.
It’s not just house prices in WA that are tipped to be softer.
The rental market is also expected to ease with income returns tipped to fall by more than 1 per cent over the next year. WA is the only rental market in the country tipped to be in negative territory over the next two years.
NAB chief economist Alan Oster said the impact of past price rises were now starting to weigh on home buyers.
“Housing affordability replaced credit availability as the key concern for buyers of new property, but employment security is still the biggest impediment in the established housing market in most states,” he said.
Despite the survey’s result, NAB believes WA prices will edge up but at slower rates.
It believes the best parts of WA for price gains will be Baldivis, Coolbellup, Joondalup, Karrinyup, Lockridge and central Perth.