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REIWA house price figures reveal Broome and Busselton top WA regional areas for increases

REIWA house price figures reveal Broome and Busselton top WA regional areas for increases

A record low rental vacancy rate is driving up property prices in Broome, with WA’s North West town becoming the top performing regional center for median house sale price growth in the most recent industry figures.

Real Estate Institute of WA data for the June quarter shows median house prices in the holiday hot spot increased by 4.7 per cent to $649,000 and shot up by 18 per cent in the 12 months to June.

The town was behind only Port Hedland which saw a 28.2 per cent growth in the same period.

Broome’s dire rental vacancy rate was recorded as zero by REIWA in March, appears to be forcing would-be tenants to buy instead.

Ray White Broome sales consultant Giles Tipping said real estate agents in the region could foresee the trend, even before the COVID-19 pandemic hit.

“The supply of rental properties available for all the Government departments and the like to lease was drying up every year, so we got to a point, I think it was in about July 2019, where there was probably only about approximately 40 houses available to rent in the whole of Broome,” he revealed.

“With that low supply of rental housing obviously rentals were climbing higher and higher and there was less choice for tenants so more tenants were sort of filtering into the sales market and as rent were climbing as well, it was becoming better value to buy.”

The trent was further compounded by the pandemic, with closed borders exposing Broome to a new wave of buyers from across the country, as well as a lagging building industry placing further pressure on supply issues.

“Those influences are coming together and creating this pressure for the sales market,” Mr Tipping added.

In Busselton, which was the second highest regional performer for the June quarter with a 4.5 per cent growth in its median house sales price, the opportunity to work remotely is drawing in a new wave of Perth buyers looking for a lifestyle change.

Busselton Jetty.
Camera IconThe Busselton Jetty. Credit: Supplied/Supplied

Busselton’s house median, which now sits at $610,000, is also being pushed up by interstate investors and buyers with the airport and direct flights to Melbourne a major drawcard.

First National Real Estate Busselton general manager Matthew Snaddon said these factors were fueling the market, with the popular coastal town bucking the national trend of increasing supply.

“We are having conversations with buyers and they’re making the comments that they’ve got the opportunity to work remotely so lifestyle following COVID is one of the primary factors that buyers are looking at when choosing property now,” he said.

Camels at sunset on Cable Beach, Broome. Picture: Tourism Australia
Camera IconBroome’s Cable Beach. Credit: Tourism Australia/TheWest

While Broome and Busselton were the standouts, the REIWA data showed a total of eight regional centers recorded median house sale price growth during the quarter.

Additionally, all nine regional centers experienced median house sale price growth on an annual basis.

Meanwhile, in Perth, the stock of properties listed for sale in July was 4.6 per cent higher than a year ago but new listings last month were down 15.7 per cent compared to June, according to the PropTrack Listings Report July 2022.

“The stock of properties listed for sale in Perth is still down around 15 per cent compared to the average over the past 10 years. While that means options are somewhat limited, it is an improvement compared to recent conditions and the stock of properties listed for sale is up 4.6 per cent compared to a year ago,” PropTrack Economist and report author Angus Moore said.

“Even so, buyers in Perth are facing fewer options than is the case for buyers in Melbourne, Sydney, and Canberra, where the total stock listed for sale is back around, or even above, the decade averages.

“By comparison, buyers in Adelaide and Brisbane have even fewer options, with the total number of properties listed for sale in both those cities down more than a third compared to the decade average.”

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Australian rental crisis: Experts warn of continuing rental crisis amid claims landlords are hiking rents in response to interest rate rises

Australian rental crisis: Experts warn of continuing rental crisis amid claims landlords are hiking rents in response to interest rate rises

Experts say Australian renters are bearing the brunt of an industry-wide housing crisis, with some reporting rent rises as much as $150 a week.

But the experts say there is no quick fix and fear the situation is set to worsen.

Watch more on this story in the video above

Watch the latest News on Channel 7 or stream for free on 7plus >>

A lack of supply combined with four consecutive interest rate rises has increased the average rental price across Australia’s capital cities by up to $55 over the course of a year.

RMIT Center for Urban Research senior research fellow Dr Megan Nethercote said it was going to get worse before it got better.

Australian renters are bearing the brunt of an industry-wide housing crisis. Credit: Getty Images

“With the latest interest rate rise and subsequent belt-tightening, renters risk their landlords passing on the costs of rising mortgage repayments,” Nethercote said.

“Some renters will lose their homes as landlords sell up.

“The plight of renters looks set to worsen as the knock-on effects of rising interest rates filter through to renters and combine with cost-of-living pressures.

“With almost half of renters on rental assistance already in rental stress, the risk of some renters falling into homelessness is real and high.”

How much are rents rising by?

Rents rose across the board in the year to June, according to Domain’s latest rental report.

The average rent for a house across the capital cities rose from $460 to $515 while units increased from $410 to $460.

RMIT research fellow Dr Louise Dorignon said rent prices were driven by demand. The only way to balance prices was to increase supply, she said.

Tenants are reporting their rent increasing in recent months, coinciding with rate rises.

The latest RBA decision on Tuesday increased the cash rate by 0.5 per cent, effectively adding $174 to monthly repayments for the average Australian mortgage holder.

Is it legal for your landlord to put up rent?

Tenant advocacy groups and industry experts have previously told 7NEWS.com.au there was nothing stopping landlords from passing on that cost to tenants.

“Landlords can increase rent due to an interest rate rise, however, they need to be prepared for tenants to push back if it’s not warranted or it’s excessive,” property management agency :Different head of customer experience Shannyn Laird said.

“Landlords can also increase the rent if the lease is periodic (meaning it’s not fixed) and the tenant hasn’t had a rent increase in a certain time period.”

Weekly rents rose by 2.2 per cent in the three months to June, with yearly growth at seven per cent. Credit: AAP

How often can a landlord put up your rent?

Laws on how frequently a landlord can increase rent vary depending on the Australian jurisdiction.

In Queensland and Western Australia, in most cases, landlords can only increase rent every six months and must give 60 days’ notice.

In Victoria, NSW, South Australia, Tasmania and the ACT, landlords can increase rent once every 12 months and must also give roughly two months’ notice.

In the Northern Territory, landlords can increase rent once every six months and only have to give 30 days’ notice.

Is there a limit to how much your rent can go up?

Your landlord can increase the rent, but there are rules on how much they can increase it by.

In most cases, it must be considered as not being “excessive” or “unreasonable”.

Tenants can complain to their jurisdiction’s Civil and Administrative Tribunal if they feel it is excessive.

What constitutes excessive differs in each jurisdiction. But, generally, rental bodies compare the increase to similar market rents and the physical condition of the property.

What can be done to fix the issue?

In short, quite a bit.

Dorignon said the current apartment stock doesn’t provide sufficient quality to meet the needs of current and future households.

“We need to transition to alternative and innovative modes of housing production, such as using less carbon-intensive materials, which would create more liveable apartment homes and, in the long term, more affordable ones for households,” Dorignon said.

Nethercote said renters represented a “growing cohort” in Australia.

“Renters deserve homes that are affordable, provide adequate security of tenure, are well-maintained and have appropriate provisions for tenant representation,” Nethercote said.

“Meeting these needs requires strong national leadership on housing; they warrant serious deliberation within a new national housing agenda.”

Watch: Scientists stunned by discovery of a ‘walking shark’.

Watch: Scientists stunned by discovery of a ‘walking shark’.

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Property prices Australia: Home prices tipped to dive in wake of RBA rate hikes – but still remain well above pre-pandemic levels

Property prices Australia: Home prices tipped to dive in wake of RBA rate hikes - but still remain well above pre-pandemic levels

Property prices across the country are tipped to fall up to another 5 per cent before the year is out, a new report forecasts.

The mid-year report by market analyst PropTrack predicts the average property price nationally will drop between 2 per cent and 5 per cent by the end of December.

By the end of next year, they are expected to fall further, potentially as much as another 10 per cent.

Watch the latest News on Channel 7 or stream for free on 7plus >>

PropTrack director of economic research and report author Cameron Kusher said the research highlighted the rapidly changing housing market.

“While there were already some signs that the rate of price growth was slowing at the beginning of this year, we were not expecting interest rates to rise until early 2023,” he said.

“There’s since been an outbreak of inflation, resulting in the Reserve Bank (RBA) lifting rates in each of the three months to July 2022.”

Property prices across the country are tipped to fall up to another 5 per cent before the year is out, a new report forecasts. Credit: James Ross/AAPIMAGE

The cash rate is currently 1.35 per cent but is expected to be hiked for a fourth consecutive month when the board meets on Tuesday.

That follows the release of the latest consumer price index figures, showing Australia’s inflation rate had risen to 6.1 per cent.

The PropTrack research operates on the assumption that the cash rate would rise to between 2.5 per cent and 3 per cent by the end of 2022.

They would then be subject to further hikes at the beginning of 2023 before remaining on hold, with the potential to be reduced late in the year or early into 2024.

Watch more on the RBA’s rate decisions in the video below

Kochie rips into RBA over rate rises.

Kochie rips into RBA over rate rises.

“The recent run-up in prices, coupled with reducing borrowing capacities as interest rates rise, is likely to see price falls broaden and then accelerate further into 2023, with the more expensive cities expected to record the largest price falls,” Kusher said.

The report predicts that the most expensive cities, Sydney and Melbourne, will lead the falls in prices.

They would decline between 3 per cent and 6 per cent this year and 9 per cent and 12 per cent in 2023.

According to PropTrack, the average price of a house and unit in Sydney is $1,435,000 and $780,000 respectively, meaning a worst-case scenario would shave $86,100 off the price of a house and $46,800 off the price of a unit before the year is out.

Hobart’s prices are forecast to decline between 1 per cent and 4 per cent this year and 7 per cent and 10 per cent next year.

Darwin’s are projected to drop between 0 per cent and 3 per cent this year and between 4 per cent and 7 per cent next year.

Canberra’s are projected to decline between 3 per cent and 6 per cent this year and 7 per cent and 10 per cent next year.

The only capital cities forecast to show a growth in prices for the rest of the year are Adelaide and Perth.

Property prices in both cities are forecast to increase by between 2 per cent and 5 per cent.

Brisbane’s prices may also increase, with a projection of between 2 per cent growth and 1 per cent decline.

The report, however, isn’t all good news for prospective buyers.

Even if there was a 15 per cent fall in property prices by the end of next year, home prices would still be well above the level they were prior to the pandemic.

“Though, home prices have grown at an exceptional pace over the last two years, rising 34 per cent since the pandemic onset in February 2020.”

The report predicts that the most expensive cities, Sydney and Melbourne, will lead the falls in prices. Credit: DAN HIMBRECHTS/AAPIMAGE

Economists predict another interest rate hike when the RBA board meets on Tuesday following the release of Australia’s inflation rate, which jumped to 6.1 per cent.

Treasurer Dr Jim Chalmers said the figures were “not news” to many Australians.

But he did forecast more interest rates would follow.

“They’ve flagged themselves, the Reserve Bank Governor has said that there are more interest rate rises to come and people need to brace for that,” he said.

“I’m not prepared to nominate a number. The Treasury, when they make their forecasts, they use an assumption about what the market is expecting and it’s not really for me to do that.

“But interest rates are going to go up further, and that will make life harder for people who are already dealing with these skyrocketing costs of living.”

Aussie men win gold in 4x100m freestyle

Aussie men win gold in 4x100m freestyle

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