WA property market set to strengthen

Western Australia's buoyant property market looks set to strengthen further, driven by the resource boom.

A survey by Ashe Morgan Winthrop shows West Australian investors are the most optimistic in their intentions to buy property, followed by Queensland investors.

The survey found the intent to invest in the national property market over the next six months eased by 1.7 percentage points, with 60 per cent of respondents saying they were likely to invest during this period.

It showed 73.5 per cent of respondents in Western Australia were likely to invest in the next half year, with 33.8 per cent of those saying they would definitely invest.

"The booming Western Australian market looks set to continue its strength, with an improvement in investment optimism of 7.4 percentage points over the last six months," Ashe Morgan Winthrop managing director Michael Rothner said.

This result was well clear of the second most optimistic state, Queensland, which recorded 64.6 per cent positive investment intentions.

Mr Rothner said the West Australian market was likely to be the strongest market going forward.

"It's a small market so this is being driven by the resource boom," he said.

"It's a situation of probably not much stock but a lot of people vying for development."

14th April 2006

Source: SMH