Property market on the climb
Home approvals across Perth have almost doubled in less than a year as evidence mounts that low interest rates have kick-started a nationwide lift in the property market.
On top of relatively muted price rises and improving housing affordability, figures from the Australian Bureau of Statistics have confirmed the long-awaited boost to the home sector.
The bureau found that through May approvals for stand-alone homes rose 2.5 per cent to be almost 12 per cent higher than a year ago.
In WA, stand-alone home approvals improved 56 per cent. Total approvals are at their highest since early 2010.
The greater Perth area leads, with approvals in the city rising by more than 70 per cent to numbers not seen since well before the global financial crisis.
Nationally and at the State level, the figures show a marked improvement in the housing market since the Reserve Bank re-started cutting rates in October.
Housing Industry Association WA acting executive director John Gelavis said improving housing affordability, led by lower interest rates, had certainly brought first and second-time buyers back into the market. “Third-time buyers and the investors are getting back as well, so it’s looking pretty positive for the medium term,” he said.