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Rates on Hold, New Home Sales Up, Rental Market Booms

Tuesday, 1st February 2011

With new homes sales up 4.2 percent in December, the Reserve Bank leaving the base rate on hold at 4.75percent and amazing demand for quality rental accommodation it seems the bottom of the market may be behind us.

David Vitale of Vitale Fine Properties said: “We are currently experiencing a booming rental market with the phone ringing hot on all of our vacant properties advertised ‘for lease’ with multiple applications being received from competing tenants on some properties. People are coming from interstate and overseas to share in this state’s resource activity. This is placing upward pressure on rental prices, which I believe to be a great sign for the recovery of the market as higher rents will encourage people back into the market to buy. I’m starting to see the ‘smart money’ be invested which to me is a sign it’s the right time to buy and be involved in the market so when the next boom cycles gets going, you don’t miss out.”

He went on to say: “It’s my view that properties along the coast and river will be the first to bounce back strongly.”