The Urban Development Institute of Australia (UDIA WA) has welcomed today’s official rate cut in the midst of a continued property market downturn that is taking a significant toll on the property industry and the broader state economy.
“Today’s historic rate cut provides further relief to home owners and may stimulate some interest from potential buyers seeking to make the most of current conditions, however as an industry, we are seeking further support from the state government to support the property market recovery in Western Australia,” UDIA WA CEO Tanya Steinbeck said.
“The property market has been in long-term decline for several years now and record low interest rates have had limited impact on WA market conditions to date,” Ms Steinbeck said.
“While the markets on the east coast seem to have responded relatively well to recent rate cuts, the WA market remains in decline,” Ms Steinbeck said.
“There are opportunities to help boost consumer confidence and market demand, including government policy stimulus measures,” Ms Steinbeck said.
“Given the RBA’s concerns regarding the slower rate of economic growth in the local economy, government expenditure on infrastructure would also be a constructive step,” Ms Steinbeck said.
“Infrastructure investment in key projects supports employment and wages growth and in turn population growth,” Ms Steinbeck said. “These are key factors that have a flow on effect to the property market.”
“The government can make the most of these low rates to make immediate investments, particularly given indications that rates are likely to get down to at least 0.5% in the coming months,” Ms Steinbeck said.
“At a state level, serious consideration of stamp duty relief must be on the cards to increase the number of transactions and boost consumer confidence,” Ms Steinbeck said.
Ends.
For more information:
Gemma Osiejak
Executive Manager Communications and Marketing
UDIA WA
P: 0421 506 819
E: gosiejak@udiawa.com.au