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Perth new apartment market bounces back

10-Sep-2017


David Cresp, Urbis

The Perth apartment market bounced back in the June 2017 quarter, recording 348 sales, an increase of 35% from the previous quarter and the highest sales level since the September 2016 quarter, according to new research released today by Property Consultants, Urbis.

Following on from a strong sales performance last quarter, the Western Suburbs recorded the highest level of sales across Perth in the June 2017 quarter. This is the first time the Western Suburbs has been the top performing precinct, overtaking the Inner City as the most active precinct in recent quarters.

Urbis Director of Property Economics and Research, David Cresp, said that the markets differed for the two top performing precincts, the Inner City and Western Suburbs.

“There are 24 active projects containing 3,140 units in the Inner City, and 54% of these units are sold. Comparatively, in the Western Suburbs, there are only 12 active projects, containing 994 units, and 74% of these units are now sold,” Mr Cresp said. “Essence by Blackburn, which launched last quarter in the Western Suburbs, was once again a top seller. New developments launching in areas like the Western Suburbs are selling well, given the relative lack of new apartment availability in this highly desirable area.”

A furthe two developments are expected to launch in the Western Suburbs in the next 6 months, bringing a total of 152 new units to the area.

Across Perth, the weighted average sale price lifted by over $14,000 to $661,566, however the increase was felt in only five of the nine Perth precincts. “The Western Suburbs registered over a $70,000 increase in weighted average sale price, and with the majority of sales, this impacted the overall Perth average,” Mr Cresp said. “However, looking at price at a product level, the most popular selling product types, one-bedroom, one-car and two-bedroom, two-bathroom units, both decreased in price slightly (less than $10,000) compared to the previous quarter.”

Three-bedroom plus product registered an increase in sales in the June 2017 quarter, with 13.5% of total sales compared to 7.7% in the previous quarter. The weighted average sale price of three-bedroom product increased by over $100,000 in the quarter, further contributing to the overall price increase across Perth. Once again, the Western Suburbs featured, registering 32% of all three-bedroom apartment sales.

This quarter, 50% of sales across Perth were owner occupier sales,” Mr Cresp said. “Understandably, owner occupiers look for bigger apartments in premium locations. Across Perth, a high level of three-bedroom product sits at development application and approval level, as high as 26% for the Fringe–South and 22% for the Western Suburbs precincts. Across Australia, only the Gold Coast comes close to this number of three-bedroom future supply in one of its precincts.”

“The market is starting to show signs of an increase in demand from the low levels seen late last year and early 2017. With many developments coming to completion over the next six months it is looking like a good time for purchasers to choose from a range of high quality new product.”

 

PERTH APARTMENT ESSENTIALS Q2 2017 SNAPSHOT

  • 348 sales were recorded in the June 2017 quarter, an increase of 35% in sales from the previous quarter which recorded 258 sales.
  • The weighted average sales price for the June 2017 quarter was $661,566, a $14,473 increase compared to the March 2017 quarter. One-bedroom, one-car and two-bedroom, two-bathroom units, both decreased in price slightly (less than $10,000) compared to the previous quarter. Three-bedroom product increased by over $100,000.
  • Two-bedroom two-bathroom product made up the majority of sales at 47% of total sales, however the greatest increase in sales was for three-bedroom plus product, with 13.5% of total sales compared to 7.7% in the previous quarter.
  • Owner occupier sales dominated the market with 50% of transactions.


Urbis
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