House Prices Under Labor
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House Prices Under Labor

Predicted market falls are coming – though some experts claim things have been over-egged.

By Terry Christodoulou
Fri, May 27, 2022Grey Clock 2 min

Economists are predicting the national property market will continue to soften despite Labor Government initiatives aimed at stimulation and a targeted ease of entry.

Labor’s recently announced ‘Help to Buy’ scheme – a new program targeting first home buyers, single parents and low-income earners in a bid to get them into the market sooner – was a key announcement from the incoming Albanese government and aligned to a confirmed continuation of the Coalition’s ‘Home Guarantee Scheme.’

“With affordability worsening due to the first interest rate rise in 11 years, the government incentives and offsets will aid housing in the short term,” says Dr Wilson, chief economist at My Housing Market.

“Of course, interest rates will play a large role in how the market behaves, and while they are certainly on the way up, how far up they go is still up in the air.”

Others point to future pain – with predictions of substantial drops in property prices.

AMP claims Australians should expect a 10% – 15% drop in house prices across the next 18 months.

By comparison, Westpac remains firm with an earlier forecast of a national price fall of 2% by the end of 2022 and a further 8% in 2023. The CBA, meanwhile, predicts national prices to flatline by the end of the year, also with an 8% drop in 2023.

Dr Wilson remains sceptical of such dramatic reductions.

“The historical data doesn’t suggest that rising interest rates impact the market at that level,” he says. “There’s no doubt that over the past six months there’s been flat, or negative price growth. But the housing market is still undersupplied and with building costs rising and a lack of building in the pipeline, along with migration set to return at full capacity soon, there will still be more people than houses.

“One only has to look at the rental market, especially in major cities like Sydney and Melbourne to see that there is still a high demand for housing.”

Not discounting the effect of interest rates on the economy, Dr Wilson explains states the key to the national housing market lies with long-term inflation and wage-growth.

“For the new government, and the RBA, the problem lies in wages, and making sure that it keeps pace with inflation. With inflation going up, housing becomes less affordable, and that will have a greater impact on prices than interest rates.

“But at the end of the day, prices will stay fairly flat, if not a little bit under the line, and will be for some time.”

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By Robyn Willis
Fri, Aug 19, 2022 < 1 min

Treechangers seeking a home and income should take note of this west coast property in picturesque Pickering Brook in the Perth Hills, which comes with its own live-in residents.

Known as ‘the Margaret River of the Hills’ the area boasts stunning bushland while being just 30 minutes from all the amenity Perth has to offer.

With eight bedrooms and 10 bathrooms, this property is a home and business, operating as a thriving day spa, Hidden Valley Eco Lodges and Day Spa.

The private main residence is made of rammed earth for thermal comfort and has three bedrooms, luxurious bathroom and a large open plan living area. A private jacuzzi on the spacious entertaining deck is the perfect spot for enjoying beautiful bushland views at the end of a long day.

For day spa guests, there are four deluxe spa treatment rooms serviced by qualified staff, a reception area and lounge plus a commercial kitchen. Overnight guests can choose from five lodges with fully equipped kitchen and heated jacuzzi. As a going concern with a consistently high annual turnover, it’s a unique opportunity for the right buyer.

Set over 5.46ha, the property is also home to a very special group of residents: a small herd of alpacas, which are included in the sale.

Price guide: $6.5 million

Inspection: By expression of interest

Agent: Susanne Broido, The Agency 0499 770 237