Seemingly overnight the Chinese have introduced potentially trillions of dollars worth of stimulus to their economy designed to keep growth around 5%.
This is BIG news if you are dependent on iron ore prices and the associated royalties.
Only days ago the dropping iron ore price and the economic slowdown in China painted a grim picture for future Federal and Western Australian budget predictions.
Housing prices were predicted to ease in Western Australia as the “end ” of this particular mining boom played out.
Is the Chinese government’s stimulus package for their economy the panacea for Australia’s looming economic malaise?
With our own Federal Reserve looking at potential rate cuts next year to ward off an economic slowdown here at home, and the prospect of iron prices staying above $100/t for the foreseeable future, it is indeed likely that the housing market in Western Australia might surge again next year.
The last month at Baston and Co. has been busy with 7 sales and plenty more homes coming to the market before Christmas.
Buyer activity is still solid, with 5 out of our last 7 being competitive multiple-offer sales, and 2 being off-market transactions.
September Sales
3/73 Walpole Street, St James
43A Edgecumbe Street, Como
5/3 Geddes Street, Vic Park
2/31 Manchester Street, Vic Park
45 Glamorgan Street, East Cannington
2/170 Carnarvon Street, East Vic Park
6/979 Albany Highway, East Vic Park
It seems that the slight easing in the Perth market in the last couple of months is nothing but a desperate gasp for air before we re-attach to the mother’s milk of Chinese economic stimulus.
For more market information contact me on 0417 99 23 24 or email: sales@bastonandco.com
Derek Baston
Director
