Page 16 - REIWA.com Market Update / June Quarter 2017

PERTH NORTH WEST SUB-REGIONMEDIAN PRICE (PRELIM)The multi-residential market in the North West sub-region is tiny, it represents 3.6 per cent of total dwelling sales. In any case, there were 32 preliminary sales for the June quarter, compared to 52 recorded in the March quarter 2017 and 55 for the same time last year. So, preliminary sales volumes are 38.5 per lower compared to the March quarter. However, it is expected multi-residential sales will li to around 68 sales in coming weeks which is higher than gures for the previous March quarter. The recent McGowan Government’s announcement to deliver the Yanchep rail line extension as part of delivering Metronet, presents a great opportunity for further investment in this sub-region.$328.5kQUARTERLY CHANGE-11.1%The 10 year average for unit sales is 89 transactions. Current market conditions are well below this gure. With the upcoming public sector investment in infrastructure across rail and roads in this sub-region, a focus should be made on nding suitable suburbs for densi cation and improved lifestyle living.SALES VOLUME (PRELIM)32QUARTERLY CHANGE-38.5%Of the small number of multi-residential sales, 59.4 per cent of transactions occur under $360,000, whilst 31.3 per cent of multi-residential are sold between $360,000 and $500,000.LISTINGS FOR SALEMULTI-RESIDENTIAL190NORTH WEST SUB-REGION MULTI-RESIDENTIAL MARKETSource: Landgate/REIWA ©AVE SELLING DAYS$450,000 $400,000 $350,000 $300,000 $250,000 $200,000140 120 100 80 60 40 20 09510 Year Average SalesMedian Multi-Residential Price (LHS)% SELLERS DISCOUNTING67.65%AVE DISCOUNT OFFERED-5.01%Multi-Residential Sales (RHS)MEDIAN PRICE (EST)The sprawling nature of the North West, means there are opportunities for green eld developments and estate villages are not uncommon. There were 156 preliminary land sales recorded for the June quarter, a signi cant drop compared to what settled for March 2017. With the lag in land settlements, REIWA expects sales to eventually li to approximately 220 transactions by the time September quarter reporting comes around.$278kPrices in the land market have continued to remain strong in this sub-region, recording a June quarter gure of $278,000 compared to $270,500 in March 2017. In this challenging property market, it is encouraging to see this quarter’s median price result exceed the 10 year average land price of $254,169.Taking a look at land size area, this sub-region tends to o er more lots under 499 square metres, with 84 sales occurring in this land area range. Price per square metre is at a premium in this sub- region, ranking second within the Perth Metro region, where lots between 320m2 and 499 m2 cost $782 per square metre.QUARTERLY CHANGE2.8%SALES VOLUME (EST)220QTLY CHANGE (EST)-33.3%LISTINGS FOR SALENORTH WEST SUB-REGION VACANT LAND MARKET$280,000 $270,000 $260,000 $250,000 $240,000 $230,000 $220,000Source: Landgate/REIWA ©1,200 1,000 80010 Year Average Sales 600 400 2000384AVE SELLING DAYSLAND103% SELLERS DISCOUNTING38.6%AVE DISCOUNT OFFERED-4.58%Land Sales (RHS)Median Land Price (LHS)16 | REIWA.COMMARKETUPDATE | JuneQuarter2017Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017