Western Australia’s residential property market is expected to experience highs and lows over the coming period.
According to a recent CB Richard Ellis report, the state is expected to see a pick up in demand for luxury housing throughout the latter part of 2010, with increased sales activity predicted to occur in Perth’s riverside, coastal, near city and western suburbs market.
However, moving into 2011, any increased activity in the luxury market is expected to be curtailed amid a second wave of buyer uncertainty.
CBRE’s report also highlights softer demand in the first home buyers market, with lower sales volumes in Perth’s traditional mortgage belt during the June quarter following a phasing out in government bonuses.
Similarly, activity in the traditionally keenly contested viticulture market in the Margaret River region is expected to ease.
CBRE manager global research and consulting Sam Reilly said recent events such as the mining tax proposal, global economic conditions, commodity prices, rising interest rates and the Federal Election had seen most WA residential markets soften in terms of investment activity.
“Furthermore, a significant rise in listings on the back of easing demand has been reflected in a downward correction in values,” Mr Reilly said.