Perth homeowners are set to enjoy the first increase in property values in more than three years.
Moody’s and CoreLogic believe that, after losing value since early 2013, there are signs Perth prices could increase almost 3 per cent this year.
They are even more bullish for apartments, tipping values to increase 5.6 per cent through this year.
Analysts with the two organisations said the value of Perth houses was falling at an annual rate of 7 per cent late last year but this was moderating.
“Perth’s housing market is showing signs that the worst is behind, and value gains could be seen in 2017,” they said.
The same analysts believe the soaring markets of Sydney and Melbourne would also quieten this year, with Sydney prices tipped to grow 7.2 per cent before falling slightly over the next two years.
The Sydney and Melbourne markets are at the centre of a housing affordability package that will be the centrepiece of the May 9 Federal Budget.
Treasurer Scott Morrison signalled yesterday that one of those measures was likely to focus on properties held by foreigners that are not rented.
The Victorian Government is introducing a special “empty premise” tax.
Mr Morrison told ABC radio: “The other area that frees up housing supply is foreign investors coming in, buying units basically as a form of passive investment, not tenanting them and taking stock out of the market.
“Now, I can tell you that is something that has got my attention as well.
“I think it is a big issue about what is effectively latent stock sitting out there in the market not being available in the rental market.”
The Federal Government is also looking at ways to encourage older people to downsize without substantial financial penalties, but Mr Morrison ruled out changes to negative gearing tax concessions.
Shelter WA spokesman Stephen Hall said it would be disappointing if the Government failed to deal with negative gearing and the capital gains tax concession. “There is no evidence that curbing tax concessions would raise rents,” he said.
“In reality, there are many would-be owners living in rental accommodation who are putting upward pressure on rents.”
Tuesday, 11 April 2017 7:43AM