by
5. November 2009 22:13
People in the western suburbs may be a little concerned by the announcement on Tuesday that the Reserve Bank had raised interest rates by 0.25%.
Traditionally, interest rate rises tend not to affect real estate activity in the western suburbs. It is affected by other forces, particularly the demand for property by the corporate and mining sectors.
When the Global Economic Recession hit in October 2008, this section of the market were severely affected.
Seemingly overnight, companies cut back on their staff…
And as a result, it was a very quiet six to nine month period in the western suburbs.
The increased amount of buyer activity over the past 12 weeks has resulted in the most sales we have seen in over 18 months and shrinking stock levels.
Coincidently, the return to the market of buyers mirrored the announcement by the State Government that the $50 billion Gorgon Project would go ahead.
As such, despite the rising interest rates, the outlook for the real estate market in the western suburbs is positive.
David Fear
Director
Altus Real Estate