Some more positive news for the Perth residential market. The MBA just released their Residential Outlook for 2015 and they have forcasted an increase in WA residential building value for 2015 of 2 per cent (see image below). “The 7.5 per cent seasonally adjusted increase in total building approvals for November 2014 reflects confidence in the market with the strength of the result slightly above industry expectations reflecting positive momentum,” stated Peter Jones, Chief Economist for Master Builders Australia.
Mr Jones also believes that this will have a positive impact on employment in the construction industry over the next 18 months. Another assumption is that lower interest rates will increase demand in the residential sector.
The commercial market is not looking as positive, experiencing its' highest office vacancy rates in 20 years, at 14.8 per cent, according to Business News. However, Property Council WA executive director Joe Lenzo remains positive and expects the commercial market to stabilize in coming years.
Source: Master Builders Australia