Page 19 - REIWA.com Market Update / June Quarter 2017

PERTH NORTH EAST SUB-REGION10 Year AverageSMEDIAN PRICE (PRELIM)MULTI-RESIDENTIALThe multi-residential market in the North East sub-region is tiny, representing only 3.8 per cent of total dwelling sales. In any case, there were 20 preliminary sales for the June quarter with REIWA estimates indicating this gure is set to increase to around 29. This is in comparison to 38 recorded in the March quarter 2017 and 31 for the same time last year. So, on the whole the multi-residential market is holding up in terms of activity. The State Government’s commitment to delivering Metronet, presents a great opportunity for densi cation and lifestyle living in and around the Forrest eld and Hills area.$302kQUARTERLY CHANGEAs was similarly observed in the housing market, unit sales are well below the 10 year average of 49. From 2012-15, the North East sub-region averaged 63 multi-residential sales per annum. Unlike other sub-regions, this market fared quite well until 2015, even when the most recent ‘people boom’ ended in 2013-14. The early part of 2016 saw activity levels decline but have recovered since.-13.7%SALES VOLUME (PRELIM)20QUARTERLY CHANGE-13.7%Multi-residential sales in the North East are all under the $500,000 mark. Of the sales that occur, 70 per cent are within the $150-$360,000 price range, with the remaining 30 per cent occurring within the $360-$500,000 price range.LISTINGS FOR SALE176NORTH EAST SUB-REGION MULTI-RESIDENTIAL MARKETSource: Landgate/REIWA ©AVE SELLING DAYS135$390,000 $370,000 $350,000 $330,000 $310,000 $290,000 $270,000 $250,000LAND90 80 70 60 50 40 30 20 10 0% SELLERS DISCOUNTING65.52%10 Year Average SalesMedian Multi-Residential Price (LHS)AVE DISCOUNT OFFERED-9.33 %Multi-Residential Sales (RHS)MEDIAN PRICE (EST)Supply of vacant land in the North East sub-region has gone through some consolidation over the last 12 months. There were 101 preliminary land sales recorded for the latest June 2017 quarter,a signi cant drop compared to what settled for the previous March quarter. With the lag in land settlements, REIWA expects sales to eventually li to approximately 160 transactions by the time September quarter reporting comes around.Prices in the land market have been relatively strong in this sub-region, recording a June quarter gure of $240,000 compared to $235,000 in March 2017. It’s encouraging to see this quarter’s result is now above the 10 year average land price of $238,263.Taking a look at land size area, this sub-region tends to o er more lots under 499 square metres, but there are 10.9 per cent of land sales for lots above 1000 square metres. Price per square metre is considerably more a ordable than any other sub-region in the Perth Metro region. 320 m2 to 499 m2 attracts a price of $606/square metre and lots from 600 m2 to 999 m2 costs $580 per square metre.$240kQUARTERLY CHANGE2.1%SALES VOLUME (EST)160QTLY CHANGE (EST)-48.8%NORTH EAST SUB-REGION VACANT LAND MARKET$270,000 $250,000 $230,000 $210,000 $190,000 $170,000 $150,000Source: Landgate/REIWA ©1,000 900 800 700 600ales 500 400 300 200 1000LISTINGS FOR SALE451AVE SELLING DAYS117% SELLERS DISCOUNTING45.52%AVE DISCOUNT OFFERED-6.39 %Land Sales (RHS)Median Land Price (LHS)REIWA.COMMARKETUPDATE | JuneQuarter2017 | 19Q2 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 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