LAND PRICE INCREASE:
FALLING supply has seen Perth vacant land price increase 3.7 per cent in the June quarter, according to preliminary figures from Urban Development Institute of Australia (UDIA WA).
The average price of land in the Perth metropolitan and Peel area was $232,348, up from $224,033 in the March quarter.
“This moderate increase is a sign of positive things to come for the property market in WA,” UDIA WA chief executive Allison Hailes said.
“The increase in price has gone hand in hand with a decrease in the number of lots on the market. Prices declined for three consecutive quarters prior to this increase.
“This was due to more stock on the market and less demand for land from consumers.”
The number of lots on the market as at June 30, 2017, was down 9 per cent compared with March 31, 2017, in Perth and Peel.
“We are now seeing stock on the market return back to more normal levels and, in turn, a strengthening in values,” Ms Hailes said.
The North East Metropolitan growth corridor recorded the biggest share of sales activity for the quarter, with a 28.4 per cent proportion of all sales.
“The North East corridor incorporates the City of Swan where housing developments are attracting new home buyers,” Ms Hailes said.
“It is also the most affordable area, with the average price at $219,895.”
The South West Metropolitan corridor recorded the second highest proportion of sales (27 per cent), with the coastal areas of Kwinana, Rockingham and Cockburn all attracting buyers.
“Prices are slightly higher in the South West corridor, with an average of $237,133. The average price in this area would be pushed up by the more premium coastal developments in Cockburn in particular,” Ms Hailes said.
Ms Hailes said the outlook was positive.
“Overall, Perth property is beginning to show signs of recovery and along with the positive economic reports released last week predicting broader economic growth for WA next financial year, we have every reason to be hopeful,” she said.
IN the four weeks to July 17 there were 162 local property sales across houses, units and land which is an increase of 1 per cent over the fourweek period.
Compared to the same time last year, sales are lower by 2 per cent.
The overall Perth market sales increased to 2351, a rise of 7 per cent over the fourweek period and remains 8 per cent higher than the same time last year.
High Wycombe tops the list for the highest number of sales at 16.
Properties available for sale in the local area decreased by 5 per cent over the last four weeks but are 5 per cent higher than the same time last year. Total listings in the Perth metro region decreased by 7 per cent over the four-week period and are 4 per cent lower than the same time last year.
The average time to sell in the local area increased by eight days to 86 days for the three months to June 2017.
The average time to sell in the Perth metro region has increased by three days to 70.
REIWA members reported 185 total properties (houses and units) leased for the fourweek period, a decrease of 11 per cent over the last four weeks but 9 per cent higher than the same time last year.
Listings in the Hills Gazette area have risen by 8 per cent in the four-week period and are 17 per cent higher than the same time last year. The overall market has seen listings remain stable over the four-week period but are 5 per cent lower than the same time last year.
The overall median weekly rent for the local area for the three months to June 2017 is $340/week, which is $30 lower than the three months to June 2016. Similarly, the overall median rent for Perth has seen a $30 decrease in the three months to June 2017.
Average time to rent in the local area has increased to 55 days in the three months to June 2017.