Friday, August 22, 2014

APM: Rents Coming Down in Perth

The Australian Property Monitors today released figures that would have renters cheering in Perth as they show a 6.7% decline in the median asking rent for houses from $493 to $460 per week over the past year. For units in Perth, it was a 5.9% decrease from $425pw to $400pw which, apart from Canberra, was the only market in Australia to go backwards.

For the landlords, gross rental yield in the last 12 months has declined 5.8% for houses and a massive 8.9% for houses! Now, a Perth landlord can on average expect a yield of 5.02%. The slowing mining boom and a record numbre of multi-residential dwellings under construction in Perth will continue hurting the Perth rental market. Business investment, often a lead indicator for the real estate industry, is expecting an 8.25% decline in the 2014-15 financial year.

Tuesday, August 5, 2014

RBA Holds Interest Rate at 2.5% for 1 Year

Today, the Reserve Bank of Australia again decided to hold the interest rate at 2.5%. It has been one year since any change has been made to the central bank rates. Last year in August, the RBA dropped the rate by 25 basis points. The statement from the RBA was almost like a carbon copy of last month's announcement and the outlook from many economists is that the rate won't be changing any time soon. The Aussie dollar didn't move much in response to the announcement, having already factored in the assumption that rates won't change.

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