More from the new Real Estate Industry of WA president published today in the Sunday times :
NEW REIWA president Alan Bourke has just taken over the reins of the real estate industry’s peak body. In his first major interview, the Sunday Times asked him what he thought was in store for the WA property market.
What is your outlook for WA’s real estate for the next 12 months?
We are looking at a steady time of consolidation. We will probably go back to long-term averages; a sensible market.
The FHOB dries up at the end of the year. How will this affect the first-home buyers’ market?
First-home buyers normally occupy about 28% of the market in home purchases. It went up to 42% as a result of the FHOG so we will probably go back down to long-term averages of 28%.
How will the Gorgon Project affect the Perth and regional real estate markets? Could it be the key to a major real estate market recovery?
WA tends to look at every positive news story as if it’s all happening now. We’ve got to understand that this project is destined for 2011. As demand increases we have 18 months lead-up time as various suppliers of land and product cater for that demand, so I think we over-estimate and over-compensate the residential importance that this project will have.
Do you think WA’s real estate market could experience another boom?
No I don’t, not in the foreseeable future. I think the market needs to consolidate, needs to take a breather. That’s what we’ll see in the market in the next 12 months. There is nothing really on the horizon to say it will take off.
Do you see a surge of investors returning to the WA real estate market?
I think there will only be a sensible entry into the marketplace with all sorts of motivations. What I don’t want to see is a major increase of speculators in the marketplace and I guess, the upside of slow steady growth is that the speculator won’t be there.
NEW REIWA president Alan Bourke has just taken over the reins of the real estate industry’s peak body. In his first major interview, the Sunday Times asked him what he thought was in store for the WA property market.
What is your outlook for WA’s real estate for the next 12 months?
We are looking at a steady time of consolidation. We will probably go back to long-term averages; a sensible market.
The FHOB dries up at the end of the year. How will this affect the first-home buyers’ market?
First-home buyers normally occupy about 28% of the market in home purchases. It went up to 42% as a result of the FHOG so we will probably go back down to long-term averages of 28%.
How will the Gorgon Project affect the Perth and regional real estate markets? Could it be the key to a major real estate market recovery?
WA tends to look at every positive news story as if it’s all happening now. We’ve got to understand that this project is destined for 2011. As demand increases we have 18 months lead-up time as various suppliers of land and product cater for that demand, so I think we over-estimate and over-compensate the residential importance that this project will have.
Do you think WA’s real estate market could experience another boom?
No I don’t, not in the foreseeable future. I think the market needs to consolidate, needs to take a breather. That’s what we’ll see in the market in the next 12 months. There is nothing really on the horizon to say it will take off.
Do you see a surge of investors returning to the WA real estate market?
I think there will only be a sensible entry into the marketplace with all sorts of motivations. What I don’t want to see is a major increase of speculators in the marketplace and I guess, the upside of slow steady growth is that the speculator won’t be there.