First National Real Estate State Chair, Cambell Giles, anticipates Western Australia’s house, land and unit prices will rise in the coming six months by no more than 5 per cent, as a result of continued growth in the state’s resources market which should flow through to the Perth market. This follows increases of between 5-10 per cent in the last six months, due mainly to a shortage of supply with the number of homes for sale in Perth at a two-year low in 2009. He anticipates vacancy rates and rents in the region will stabilise in the first six months of 2010. Currently, Mr Giles attributes around 10-20 per cent of Western Australia’s sales activity to investors and expects this to increase by between 1-5 per cent in the first half of 2010. “Investors will continue to be attracted back into the market, as the serviceability of houses in the cheaper areas is still making investment a strong option to investors,” Mr Giles said. “Investors are expected to replace first home buyers in sales activity to some extent although I expect first home buyers will continue to play a role in the market on an ongoing basis. “First home buyers are still receiving some form of grant and, as such, their activity should not change too much in terms of general market share.” Interest rates are predicted to increase in the first six months of 2010, but it is tough lending criteria and changes in bank lending policy which is having a greater impact, according to Mr Giles. The major buyers in the property market are Generation X – those aged between 32 and 45 years and it is predicted sales with this segment will increase over the next 12 months due to new jobs and businesses in the region. The proposed introduction of the government’s emissions trading scheme is received with mixed feelings by Mr Giles. “Emissions trading is a good place to start but the real difference will be made by individuals, not by companies,” Mr Giles said.