| Agents Not To Blame For "McMansions" |
President of the Real Estate Institute of Western Australia, Greg Rossen, today rejected claims that the real estate industry was urging people to buy bigger houses. (West Australian Newspaper, page 9 ).
Yesterday, Murdoch University professor of city policy Peter Newman, claimed that the industry was convincing people that bigger homes were a better investment.
"This is completely untrue," Mr Rossen said.
"It's wrong to assume that bigger homes are always a better investment because capital growth and rental returns depend on a combination of factors including location, quality, supply and demand.
The recent growth in sales and values across WA has been across the full range of dwelling types as well as vacant residential land," Mr Rossen said.
Mr Rossen said real estate agents help people find the right homes to suit their lifestyle and budget, and this often meant smaller, affordable, low maintenance housing.
"Demographic trends show very clearly that many Australians are downsizing or thinking about it. There is a shift towards well-located townhouses and villas as people have fewer children or are living alone," Mr Rossen said.
Mr Rossen said the percentage growth during 2005 for units in Perth was almost the same rate as for houses, and that these were proving to be a good investment for many people.
"Units in Midland, East Victoria Park and Dianella have all jumped in value by 30 per cent or more over the last year," Mr Rossen said.
Mr Rossen said there were social, cultural and economic reasons for some Australians to be building large houses on small blocks in the outer suburbs, but these decisions are not driven by advice from real estate agents.
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