The Urban Development Institute of Australia (UDIA WA) has welcomed today’s highly anticipated interest rate cut as a timely move that will benefit the struggling Western Australian property market.
“WA has been wearing the pain of monetary policy decisions made to address economic and market conditions on the east coast for too long. With our property market needing further stimulus to get going, this move by the RBA needs to be followed through by the big banks,” UDIA WA CEO Tanya Steinbeck said.
“One of the biggest contributors to the continued market downturn in WA has been the excessively tight lending criteria that banks are insisting that home loan applications meet,” Ms Steinbeck said.
“We can only hope that if the banks pass on this official cash rate cut, in combination with the potential for loosened mortgage rules flagged last month, we will see more positive movement in terms of demand for property as consumer confidence is bolstered,” Ms Steinbeck said.
“WA is on the precipice of a property market recovery and it will take all stakeholders including government, banks and industry working together to create a supportive environment for growth,” Ms Steinbeck said.
“This cut, tied with APRA’s move a few weeks ago to review the 7% servicing benchmark for mortgage assessments adds up to more people being able to access housing,” Ms Steinbeck said.
“These latest moves, along with renewed certainty for negative gearing and capital gains tax regimes following the recent federal election, along with the introduction of the First Home Buyer Deposit Scheme and the Keystart changes at a state level, we are seeing a build up of support for a market recovery,” Ms Steinbeck said.
“More people buying property and supporting the housing market recovery will have a positive flow on effect to the rest of the economy,” Ms Steinbeck said.
“Supporting the health of the property industry into market recovery is critical to the people of WA, particularly in terms of employment opportunities and consumer confidence,” Ms Steinbeck said.
“The property industry contributed over $21 billion to Gross State Product in 2017-18 and employs 1.3 times more people than the mining industry in WA,” UDIA WA CEO Tanya Steinbeck said.
Ends.
For more information:
Gemma Osiejak
Executive Manager Communications and Marketing
UDIA WA
P: 0421 506 819
E: gosiejak@udiawa.com.au