If you bought a house before 2013, chances are that your house has not appreciated any more in the last three years according to the Australian Bureau of Statistics. Over the past year, house prices in Perth have fallen by 4.8% while the national trend in the last three months has been to increase by 2%. It is the largest annual rate of decline in Perth since mid-2011 and prices now are at the same level as in 2013. 2014 saw Perth prices peak but house prices have dropped by almost 6% since then. In the last five years, the RBA cash rate has dropped from 4.75% to 1.5% today. So while interest rates have never been so good, house prices seem stagnant, to falling.
Wednesday, September 21, 2016
Tuesday, August 2, 2016
Australian Cash Rate Now 1.50%
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. Actions by Chinese policymakers are supporting the near-term growth outlook, but the underlying pace of China's growth appears to be moderating.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
Financial markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest that overall growth is continuing at a moderate pace, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators continue to be somewhat mixed, but are consistent with a modest pace of expansion in employment in the near term.
Recent data confirm that inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in lending for housing purposes has slowed a little this year. All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished.
Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.
Friday, July 1, 2016
Perth 7.4% House Price Decline in 18 months
If you have been listening to the real estate agents, you would be thinking that the house prices are about to go back up again. Unfortunately, the last 18 month has seen a 7.4% drop in house prices in Perth. We are the worst performing market in Australia.
Over six months, house prices have dropped 4.7%, and 7.4% in the last 12 months. The closest market to Perth is Darwin but they have only dropped 1.1%. How's the east coast doing? Sydney is up 11.3% and Melbourne is up 11.5% over the last year. The vacancy rate is sitting at 4.7%, also the worst in the country.
Over six months, house prices have dropped 4.7%, and 7.4% in the last 12 months. The closest market to Perth is Darwin but they have only dropped 1.1%. How's the east coast doing? Sydney is up 11.3% and Melbourne is up 11.5% over the last year. The vacancy rate is sitting at 4.7%, also the worst in the country.
15% of Perth Houses Selling at Loss
Compared to last year, two times more apartments and three times more houses have sold at a loss this year according to CoreLogic RP Data. 23% of apartments and almost 15% of houses sold at a loss in Perth compared to 11.7% and 5.1% last year indicating that the pressure is increasing on people to liquidate. Most of these houses and apartments were held for about 5 years when the mining boom was at its highest.
For those looking for a home in Perth, the time could be right to make an offer.
For those looking for a home in Perth, the time could be right to make an offer.
Tuesday, June 7, 2016
Cash rate left steady
At its meeting today, the Board decided to leave the cash rate unchanged at 1.75 per cent.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. China's growth rate moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
In financial markets, conditions have generally been calmer for the past several months following the period of volatility early in the year. Attention is now turning to some particular event risks. Funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with continued expansion of employment in the near term.
Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector. Over the past year, growth in credit to businesses has picked up, even as that to households has moderated a little. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.
Taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time.
22% CBD Offices Vacant - Worst in 23 years
Well you know we are in a downturn and the mining boom has ended when 22% of offices in the CBD are empty in Perth. This is the worst result in 23 years, going back to 1993 when the vacancy rate was this high. Rent is down 40% from figures in 2012 and BIS Shrapnel are suggesting that there are two more years of downturn before there is any change in momentum in Perth.
Many of the landlords for office spaces around Perth are offering rent incentives and some renovating empty floors into state of the art end-of-trip facilities that even a professional gym would be proud of. Has your office undergone such upgrades? let us know.
Many of the landlords for office spaces around Perth are offering rent incentives and some renovating empty floors into state of the art end-of-trip facilities that even a professional gym would be proud of. Has your office undergone such upgrades? let us know.
Tuesday, May 31, 2016
Australia's Skilled Occupation List for 2016-17 in Alphabetical Order
One of the most watched lists for people looking to migrate to Australia is the annual skilled migrant list which is also a reflection of the needs of the nation. Unsurprisingly, the 2016-17 list shown below in alphabetical order has seen Mining and Petroleum Engineers removed from the list due to the end of the mining boom.
| Occupation | ANZSCO Code | Assessing Authority |
| Construction Project Manager | 133111 | VETASSESS |
| Cabinetmaker | 394111 | TRA |
| Panelbeater | 324111 | TRA |
| Accountant (General) | 221111 | CPA/CA/IPA |
| Actuary | 224111 | VETASSESS |
| Aeronautical Engineer | 233911 | Engineers Australia |
| Agricultural Consultant | 234111 | VETASSESS |
| Agricultural Engineer | 233912 | Engineers Australia |
| Agricultural Scientist | 234112 | VETASSESS |
| Airconditioning and Mechanical Services Plumber | 334112 | TRA |
| Airconditioning and Refrigeration Mechanic | 342111 | TRA |
| Anaesthetist | 253211 | Medical Board of Australia |
| Analyst Programmer | 261311 | ACS |
| Architect | 232111 | AACA |
| Automotive Electrician | 321111 | TRA |
| Barrister | 271111 | SLAA |
| Biomedical Engineer | 233913 | Engineers Australia |
| Boat Builder and Repairer | 399111 | TRA |
| Bricklayer | 331111 | TRA |
| Cardiologist | 253312 | Medical Board of Australia |
| Cardiothoracic Surgeon | 253512 | Medical Board of Australia |
| Carpenter | 331212 | TRA |
| Carpenter and Joiner | 331211 | TRA |
| Cartographer | 232213 | VETASSESS |
| Chef*** | 351311 | TRA |
| Chemical Engineer | 233111 | Engineers Australia |
| Child Care Centre Manager | 134111 | TRA |
| Chiropractor | 252111 | CCEA |
| Civil Engineer | 233211 | Engineers Australia |
| Civil Engineering Draftsperson | 312211 | Engineers Australia/ VETASSESS |
| Civil Engineering Technician | 312212 | VETASSESS |
| Clinical Haematologist | 253313 | Medical Board of Australia |
| Clinical Psychologist | 272311 | APS |
| Computer Network and Systems Engineer | 263111 | ACS |
| Dental Hygienist | 411211 | VETASSESS |
| Dental Prosthetist | 411212 | TRA |
| Dental Technician | 411213 | TRA |
| Dental Therapist | 411214 | VETASSESS |
| Dermatologist | 253911 | Medical Board of Australia |
| Developer Programmer | 261312 | ACS |
| Diagnostic and Interventional Radiologist | 253917 | Medical Board of Australia |
| Diesel Motor Mechanic | 321212 | TRA |
| Drainer | 334113 | TRA |
| Early Childhood (Pre-Primary School) Teacher | 241111 | AITSL |
| Educational Psychologist | 272312 | APS |
| Electrical Engineer | 233311 | Engineers Australia |
| Electrical Engineering Draftsperson | 312311 | Engineers Australia |
| Electrical Engineering Technician | 312312 | TRA |
| Electrical Linesworker | 342211 | TRA |
| Electrician (General) | 341111 | TRA |
| Electrician (Special Class) | 341112 | TRA |
| Electronic Equipment Trades Worker | 342313 | TRA |
| Electronic Instrument Trades Worker (General) | 342314 | TRA |
| Electronic Instrument Trades Worker (Special Class) | 342315 | TRA |
| Electronics Engineer | 233411 | Engineers Australia |
| Emergency Medicine Specialist | 253912 | Medical Board of Australia |
| Endocrinologist | 253315 | Medical Board of Australia |
| Engineering Manager | 133211 | Engineers Australia/AIM |
| Engineering Technologist | 233914 | Engineers Australia |
| Environmental Engineer | 233915 | Engineers Australia |
| Environmental Health Officer | 251311 | VETASSESS |
| External Auditor | 221213 | CPA/CA/IPA |
| Fibrous Plasterer | 333211 | TRA |
| Fitter (General) | 323211 | TRA |
| Fitter and Turner | 323212 | TRA |
| Fitter-Welder | 323213 | TRA |
| Forester | 234113 | VETASSESS |
| Gasfitter | 334114 | TRA |
| Gastroenterologist | 253316 | Medical Board of Australia |
| General Practitioner | 253111 | Medical Board of Australia |
| Geotechnical Engineer | 233212 | Engineers Australia |
| Glazier | 333111 | TRA |
| ICT business Analyst | 261111 | ACS |
| Industrial Engineer | 233511 | Engineers Australia |
| Intensive Care Specialist | 253317 | Medical Board of Australia |
| Internal Auditor | 221214 | VETASSESS |
| Joiner | 331213 | TRA |
| Land Economist | 224511 | VETASSESS |
| Landscape Architect | 232112 | VETASSESS |
| Lift Mechanic | 341113 | TRA |
| Locksmith | 323313 | TRA |
| Management Accountant | 221112 | CPA/CA/IPA |
| Materials Engineer | 233112 | Engineers Australia |
| Mechanical Engineer | 233512 | Engineers Australia |
| Medical Administrator | 134211 | VETASSESS |
| Medical Diagnostic Radiographer | 251211 | AIR |
| Medical Laboratory Scientist | 234611 | AIMS |
| Medical Oncologist | 253314 | Medical Board of Australia |
| Medical Practitioners nec | 253999 | Medical Board of Australia |
| Medical Radiation Therapist | 251212 | AIR |
| Metal Fabricator | 322311 | TRA |
| Metal Machinist (First Class) | 323214 | TRA |
| Metallurgist | 234912 | VETASSESS |
| Midwife | 254111 | ANMAC |
| Mining Engineer (Excluding Petroleum) | 233611 | Engineers Australia |
| Motor Mechanic (General) | 321211 | TRA |
| Motorcycle Mechanic | 321213 | TRA |
| Naval Architect | 233916 | Engineers Australia |
| Neurologist | 253318 | Medical Board of Australia |
| Neurosurgeon | 253513 | Medical Board of Australia |
| Nuclear Medicine Technologist | 251213 | ANZSNM |
| Nurse Practitioner | 254411 | ANMAC |
| Nursing Clinical Director | 134212 | ANMAC |
| Obstetrician and Gynaecologist | 253913 | Medical Board of Australia |
| Occupational Health and Safety Adviser | 251312 | VETASSESS |
| Occupational Therapist | 252411 | OTC |
| Ophthalmologist | 253914 | Medical Board of Australia |
| Optometrist | 251411 | OCANZ |
| Organisational Psychologist | 272313 | APS |
| Orthopaedic Surgeon | 253514 | Medical Board of Australia |
| Osteopath | 252112 | ANZOC |
| Other Spatial Scientist | 232214 | VETASSESS |
| Otorhinolaryngologist | 253515 | Medical Board of Australia |
| Paediatric Surgeon | 253516 | Medical Board of Australia |
| Paediatrician | 253321 | Medical Board of Australia |
| Painting trades workers | 332211 | TRA |
| Pathologist | 253915 | Medical Board of Australia |
| Petroleum Engineer | 233612 | Engineers Australia |
| Physicist (Medical Physicist only) | 234914 | ACPSEM |
| Physiotherapist | 252511 | APC |
| Plastic and Reconstructive Surgeon | 253517 | Medical Board of Australia |
| Plumber (General) | 334111 | TRA |
| Podiatrist | 252611 | APodCANZPAC |
| Pressure Welder | 322312 | TRA |
| Primary Health Organisation Manager | 134213 | VETASSESS |
| Production Manager (Mining) | 133513 | VETASSESS |
| Production or Plant Engineer | 233513 | Engineers Australia |
| Project Builder | 133112 | VETASSESS |
| Psychiatrist | 253411 | Medical Board of Australia |
| Psychologists nec | 272399 | APS |
| Psychotherapist | 272314 | VETASSESS |
| Quantity Surveyor | 233213 | AIQS |
| Radiation Oncologist | 253918 | Medical Board of Australia |
| Radio Communications Technician | 313211 | TRA |
| Registered Nurse (Aged Care) | 254412 | ANMAC |
| Registered Nurse (Child and Family Health) | 254413 | ANMAC |
| Registered Nurse (Community Health) | 254414 | ANMAC |
| Registered Nurse (Critical Care and Emergency) | 254415 | ANMAC |
| Registered Nurse (Developmental Disability) | 254416 | ANMAC |
| Registered Nurse (Disability and Rehabilitation) | 254417 | ANMAC |
| Registered Nurse (Medical Practice) | 254421 | ANMAC |
| Registered Nurse (Medical) | 254418 | ANMAC |
| Registered Nurse (Mental Health) | 254422 | ANMAC |
| Registered Nurse (Paediatrics) | 254425 | ANMAC |
| Registered Nurse (Perioperative) | 254423 | ANMAC |
| Registered Nurse (Surgical) | 254424 | ANMAC |
| Registered Nurses nec | 254499 | ANMAC |
| Renal Medicine Specialist | 253322 | Medical Board of Australia |
| Rheumatologist | 253323 | Medical Board of Australia |
| Roof plumber | 334115 | TRA |
| Secondary School Teacher | 241411 | AITSL |
| Sheetmetal Trades Worker | 322211 | TRA |
| Ship's Engineer | 231212 | AMSA |
| Ship's Master | 231213 | AMSA |
| Ship's Officer | 231214 | AMSA |
| Shipwright | 399112 | TRA |
| Small Engine Mechanic | 321214 | TRA |
| Social Worker | 272511 | AASW |
| Software Engineer | 261313 | ACS |
| Solicitor | 271311 | SLAA |
| Solid Plasterer | 333212 | TRA |
| Sonographer | 251214 | AIR |
| Special Education Teachers nec | 241599 | AITSL |
| Special Needs Teacher | 241511 | AITSL |
| Specialist Physician (General Medicine) | 253311 | Medical Board of Australia |
| Specialist Physicians nec | 253399 | Medical Board of Australia |
| Speech Pathologist | 252712 | SPA |
| Stonemason | 331112 | TRA |
| Structural Engineer | 233214 | Engineers Australia |
| Surgeon (General) | 253511 | Medical Board of Australia |
| Surveyor | 232212 | SSSI |
| Systems Analyst | 261112 | ACS |
| Taxation Accountant | 221113 | CPA/CA/IPA |
| Teacher of the Hearing Impaired | 241512 | AITSL |
| Teacher of the Sight Impaired | 241513 | AITSL |
| Technical Cable Jointer | 342212 | TRA |
| Telecommunications Engineer | 263311 | Engineers Australia |
| Telecommunications Field Engineer | 313212 | Engineers Australia |
| Telecommunications Network Engineer | 263312 | Engineers Australia |
| Telecommunications Network Planner | 313213 | Engineers Australia |
| Telecommunications Technical Officer or Technologist | 313214 | Engineers Australia |
| Thoracic Medicine Specialist | 253324 | Medical Board of Australia |
| Transport Engineer | 233215 | Engineers Australia |
| Urologist | 253518 | Medical Board of Australia |
| Valuer | 224512 | VETASSESS |
| Vascular Surgeon | 253521 | Medical Board of Australia |
| Veterinarian | 234711 | AVBC |
| Wall and Floor Tiler | 333411 | TRA |
| Welder (First Class) | 322313 | TRA |
| Welfare Centre Manager | 134214 | ACWA/VETASSESS |
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