Key sub­urbs buck the slow sale trend

Western Suburbs Weekly - - News -

DE­SPITE a gen­eral per­cep­tion that Perth’s prop­erty mar­ket is not per­form­ing well, many sub­urbs are see­ing pos­i­tive changes, with prop­er­ties sell­ing faster than they did sev­eral years ago.

REIWA pres­i­dent Hay­den Groves said while Perth’s av­er­age days on mar­ket was cur­rently 66 days, no­tably higher than the 41 days it took to sell a prop­erty in 2013, it was im­por­tant to also look at in­di­vid­ual sub­urbs and their per­for­mance.

“If we dig a lit­tle deeper and look at av­er­age sell­ing days at a sub­urb level, there are nu­mer­ous ar­eas of Perth sell­ing sig­nif­i­cantly quicker now,” he said.

Ross­moyne ex­pe­ri­enced the big­gest im­prove­ment in av­er­age sell­ing days, with data find­ing it was 22 days quicker to sell in the area than it was in the year to Jan­uary 2014.

“Church­lands, Glen For­rest and Dalkeith are also ex­pe­ri­enc­ing faster sell­ing times, with each sub­urb im­prov­ing by 15 days in the year to Jan­uary 2017, com­pared to the year to Jan­uary 2014,” Mr Groves said.

Sub­urbs ap­peal­ing to trade-up buy­ers ex­pe­ri­enced the most im­prove­ment, with eight of the 10 sub­urbs on REIWA’S list hav­ing an an­nual me­dian house price for the year to Jan­uary 2017 above $750,000. Four of those were above the $1 mil­lion mark.

western sub­urbs have seen strong im­prove­ments in sell­ing times over the last three years and are sell­ing well be­low the cur­rent Perth av­er­age of 66 days.

Church­lands, Dalkeith, Leed­erville and Clare­mont were among REIWA’S top 10 sub­urbs for re­duced days on the mar­ket from the year to Jan­uary 2014 to the year to Jan­uary 2017.

Both Dalkeith and Church­lands saw sell­ing times fall by 15 days over the past three years, while the time to sell fell by 8 days in Clare­mont and Leed­erville.

Ac­ton Dalkeith and Cottes­loe’s Grant Hey­mans said sell­ing times in Dalkeith and Clare­mont had im­proved over the past year.

“We have seen a steady re­duc­tion in stock lev­els in re­cent times and they are close to his­toric lows in th­ese two sub­urbs,” he said.

“Dalkeith prop­er­ties are in great de­mand, with buy­ers look­ing for large blocks in a leafy pres­ti­gious sub­urb.

“Over the past 12 months buy­ers have re­ally strug­gled to find suit­able prop­erty as stock lev­els have dropped as low as 20 prop­er­ties avail­able for sale across Dalkeith, con­tribut­ing to a 2.2 per cent growth rate in the last quar­ter.

“Dalkeith sales are up around 10 per cent in dol­lar vol­ume year on year.

“The area has also seen high value prop­er­ties trans­act in re­cent times, which in­di­cates buyer con­fi­dence at cur­rent pric­ing.”

Mr Hey­mans said stock lev­els in Clare­mont had dropped as low as 60 prop­er­ties, which was ex­tremely low given there were 3600 dwellings in the sub­urb.

“The sub­urb has had a 3.6 per cent growth rate in the last quar­ter, but has close on 13 per cent less sales in dol­lar terms,” he said.

“Apart­ments sold off the plan have been sell­ing very well – many of th­ese sales have been down­siz­ers mov­ing out of the large blocks in Dalkeith and Clare­mont.

“Young in­vestors have also found th­ese apart­ments at­trac­tive as the de­pre­ci­a­tion num­bers work for them.”

Mr Hey­mans said across Clare­mont and Dalkeith, the $1 mil­lion to $1.5 mil­lion price bracket had been far more ac­tive than in the pre­vi­ous 12 months.

“The $2 mil­lion to $3 mil­lion price points have been sell­ing very well in re­cent times,” he said.

“Th­ese are usu­ally four-bed­room fam­ily homes and there has been un­prece­dented de­mand for th­ese homes as they serve the pri­vate school precinct.

“As traf­fic con­di­tions de­te­ri­o­rate we see more fam­i­lies want­ing to move closer to the pri­vate school zones.

“There are also very few ex­ec­u­tive rental prop­er­ties avail­able cre­at­ing more de­mand in the sales arena.”

While prox­im­ity to pri­vate schools was sup­port­ing de­mand for homes in Clare­mont and Dalkeith, Abel Mcgrath Leed­erville prop­erty con­sul­tant Adam Marchant said the on­go­ing de­vel­op­ment of the cafe strip in­fra­struc­ture was be­hind the in­ter­est in Leed­erville.

“There is a real sense of com­mu­nity which has con­ti­nu­ity all the way from Mt Hawthorn to Leed­erville, west Leed­erville and Su­bi­aco’s Rokeby Road,” he said.

“This in­cludes the Scar­bor­ough Beach Road in­fra­struc­ture which ap­pears to be link­ing along Ox­ford Street to bind this remarkable swath of prime in­ner-city liv­ing.

“There are fab­u­lous restau­rants, shops and en­ter­tain­ment op­tions which have a huge at­trac­tion for up­wardly mo­bile pro­fes­sional cou­ples, small fam­i­lies and down­siz­ers.”

Mr Marchant said Leed­erville, with an av­er­age sell­ing time of 35 days, was see­ing a lot of ac­tiv­ity in the $700,000 to $800,000 range for homes on smaller di­vi­sions.

“Full blocks with ex­ist­ing homes op­er­ate more in the low mil­lion range, and neigh­bour-ing west Leed­erville has strong sup­port in the full spec­trum all the way into the $1.8 mil­lion plus,” he said.

“There is still a level of over­sup­ply in the apart­ment sec­tor but there are some great prod­ucts with clever de­sign and ar­chi­tec­tural in­flu­ence which is com­pen­sat­ing.

“We are cer­tainly mov­ing away from the older-style apart­ments in or­der to at­tract a more dis­cern­ing mar­ket.”

Bex­leys Real Es­tate prin­ci­pal Mark Smith said prox­im­ity to schools and value for money was part of Church­lands’ ap­peal.

“Not only do you get a de­cent-sized block and home, it is also lo­cated in an area with ac­cess to ex­cel­lent schools and sport­ing fa­cil­i­ties, mean­ing fam­i­lies do not need to re­lo­cate from pri­mary to high school, in­ter­rupt­ing the kids’ ed­u­ca­tion,” he said.

Mr Smith said homes with plenty of yard space and enough room for the fam­ily were in de­mand, along with ex­ec­u­tive-style homes fin­ished to a high stan­dard, such as those in the Church­lands Green de­vel­op­ment.

“The homes that have been built in re­cent years are in quite high de­mand due to the con­tem­po­rary ar­chi­tec­ture and low-main­te­nance ap­peal, how­ever the homes built in the 1980s and 2000s are en­joy­ing good de­mand as well due to the larger block sizes on of­fer and the po­ten­tial for new own­ers to do some work to up­date the in­ter­nal styling, which im­proves the over­all value of the prop­erty go­ing for­ward,” he said.

Mr Smith said prop­er­ties in the $1 mil­lion to $2 mil­lion range were sell­ing well, but Church­lands’ ap­peal was not lim­ited to the higher price brack­ets.

“Church­lands also of­fers smaller scale liv­ing, with apart­ments and town­houses, where first-home buy­ers/cou­ples are seek­ing af­ford­able homes close to all ameni­ties,” he said.

“We have apart­ments and town­houses around the Water­way Court/herds­man Lake district that are sell­ing in the range of $260,000 to $400,000 and above.”

When it came to sell­ers in­creas­ing their chance of a quick sale, Mr Marchant said cor­rect pric­ing was im­por­tant, with the mar­ket now highly ed­u­cated.

“There is an abun­dance of sales data at ev­ery­one’s fin­ger­tips and since the 2008 cor­rec­tion most buy­ers per­form com­pre­hen­sive due dili­gence,” he said.

“We are find­ing buyer vol­ume at home opens to be high as long as there is align­ment with the mar­ket.”

While char­ac­ter homes were in de­mand in Leed­erville, Mr Marchant said sell­ers needed to give thought to whether they ren­o­vated or not and seek ad­vice from an agent about where they should spend their money.

“A seller needs to get more than a dol­lar back for a dol­lar spent and gen­er­ally bath­rooms and kitchens pay back,” he said.

“Ob­vi­ously sim­ple cos­metic im­prove­ments, from paint to gar­den mulching, help cre­ate an emo­tive re­sponse from buy­ers.”

Mr Hey­mans said buy­ers were more sen­si­tive to ap­pear­ance than ever.

“The ini­tial im­pres­sion does mat­ter,” he said.

“A gar­den tidy up, paint makeover and fur­ni­ture stag­ing will bring a good re­turn on in­vest­ment. In­vest­ment in mar­ket­ing re­mains para­mount as buy­ers are com­ing from a wider area than ever.”

Mr Hey­mans said ren­o­vated homes were sell­ing well in Clare­mont and Dalkeith.

“There is a de­creased ap­petite from buy­ers to ren­o­vate,” he said.

“Some sell­ers are find­ing that even a light makeover of around $20,000 makes a sig­nif­i­cant dif­fer­ence in in­ter­est lev­els and sales fol­low quickly.”

Ac­ton Dalkeith and Cottes­loe’s Grant Hey­mans.

Abel Mcgrath Leed­erville’s Adam Marchant.

This char­ac­ter home in Leed­erville sold af­ter the sec­ond home open for $850,000.

Two of­fers were re­ceived for this Church­lands home and it sold within a week.

This Clare­mont home sold in un­der a week for $1.3 mil­lion.

Bex­leys Real Es­tate prin­ci­pal Mark Smith.

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