Optimism abounds for SW in 2015
STABILITY is tipped for the South West property market in 2015.
Agents are predicting continued low interest rates to create confidence and make the market even more appealing to first-homebuyers.
REIWA Bunbury chairman and Professionals Southern Districts Estate Agency principal Drew Cary predicts the number of transactions to rise.
"I expect that interest rates will remain largely constant," he said.
"This is good news for everyone, as stability means confidence.
"From this observation I predict that we will have an increasing number of transactions, up by 5-10 per cent, but only small price increases of up to 2-4 per cent across the greater Bunbury area.
"Land sales will continue to be strong and will enjoy a larger relative price increase than established property.
"There will be some hot spots - with Usher, Carey Park, Withers and East Bunbury the places to watch."
Re/Max Lighthouse Realty's David Willis believes a cut to interest rates will further boost the market.
"The markets now think it's a dead certainty the Reserve Bank will cut interest rates by April," he said.
"If that happens, the housing market will be boosted throughout the course of 2015, as buyer confidence continues to increase.
"We have noticed over the last few months that house prices have been slowly increasing in most areas and buyers are recognising that now is a good time to purchase.
"If I was a betting man, I would suggest that we are in for a pretty stable year with a lot more first-homebuyers entering the market."
Barr and Standley's Garrod Delfs predicts Eaton to be an area to watch in 2015.
"I feel the South West market in 2015 is going to remain steady and it will be a great time for first-homebuyers and investors to enter the market while the interest rates remain low and rents are high," he said.
"The Eaton and Millbridge area will be the standout performer this year, as its popularity continues to grow among families and investors who want to be close to top quality shopping centres, schools and amenities."
Rosemary Lynch from Stocker Preston is optimistic for the market this year.
"With the New Year here and so much doom and gloom around last year we are all seriously hoping and remaining positive for a happy and prosperous 2015," she said.
"By the end of January we should see the market becoming active again and with interest rates currently very low, now is a great time for buyers to upgrade and secure a new home.
"Serious investors know that with this time of year being a quieter period, it puts them in a greater position to take advantage of securing a bargain and upgrading their portfolio."
Commercial Realty principal Mike Jenkins said he had a positive outlook for that sector of the market.
"I see that 2015 will continue to be a positive year for commercial and retail sales, as we attract big state and national companies to the region," he said.
"There is a significant level of investment to occur in the South West over the forthcoming 2-3 years and this continues to make the area highly attractive for businesses and commercial ventures.
"I believe that this trend will therefore continue for 2015 and on that basis I am optimistic."
He said about 40 commercial properties were sold in the Bunbury area during 2014 with a net value of $121 million and average the sales in the $450,000-$500,000 range.
He said this reflected a good cross section of sales values for the area.
"It's a dead certainty the Reserve Bank will cut interest rates by April" David Willis
