Page 22 - REIWA.com Market Update / June Quarter 2017

PERTH SOUTH EAST SUB-REGIONMEDIAN PRICE PRELIM)MULTI-RESIDENTIALThe multi-residential market in the South East sub-region is the smallest of the ve sub-regionsin the Perth Metro area. It represents only 2.6 per cent of activity in the June 2017 quarter. There were 14 preliminary sales for the June quarter, compared to 21 recorded in the March quarter 2017 and 26 for the same time last year. However, REIWA estimates activity levels to settle around 35 once further transactions have come in. This would represent a li in activity levels by 66.7per cent on a quarterly basis and 35 per cent annually.$260kAs was similarly observed in the housing market, in this sub-region, unit sales are well belowthe 10 year average of 48 and based on preliminary unit sales, current activity is lower by 27per cent. The last time multi-residential sales were around the 10 year average was during the most recent ‘people boom’ from 2012-14. The sub-region presents a great opportunity for further densi cation.QUARTERLY CHANGE5.5 %SALES VOLUME (PRELIM)14QUARTERLY CHANGESOUTH EAST SUB-REGION MULTI-RESIDENTIAL MARKETSource: Landgate/REIWA ©7060 10 Year Average Sales 50 40 30 20 100-33.3%$360,000 $340,000 $320,000 $300,000 $280,000 $260,000 $240,000 $220,000 $200,000LISTINGS FOR SALE121AVE SELLING DAYS103% SELLERS DISCOUNTING60.0 %AVE DISCOUNT OFFERED-9.26 %Multi-Residential Sales (RHS)Median Multi-Residential Price (LHS)$233kThe 10 year average price for land in the sub-region is $230,928. The current June quarter preliminary median land price of $233,000 sits close to the 10 year average.2 Ofmoreinterestthough,isthepricepersquaremetreinthesub-region.Lotsunder320m attracta price of $693 per square metre, whilst the more common lots between 320 m2 and 499 m2 cost $606 per square metre.QUARTERLY CHANGE2.2%SALES VOLUME (EST)250SOUTH EAST SUB-REGION VACANT LAND MARKETSource: Landgate/REIWA ©QTLY CHANGE (EST)-16.7%$255,000 $250,000 $245,000 $240,000 $235,000 $230,000 $225,000 $220,000 $215,000 $210,0001,000 800 600 400 200 0LANDMEDIAN PRICE (EST)Land sales are the second biggest part of the property market in the sub-region, representing 17 per cent of transactions. The preliminary results indicate sales for the June quarter are at 112 which is 63 per cent lower than the March quarter. However, REIWA expects land sales to li to around 250 in coming weeks, which would result in a 16.7 per cent drop in activity once most land sales have settled for the latest June quarter.LISTINGS FOR SALE65310 Year Average SalesAVE SELLING DAYS132% SELLERS DISCOUNTING52.65%AVE DISCOUNT OFFEREDLand Sales (RHS)Median Land Price (LHS)-6.81 %22 | REIWA.COMMARKETUPDATE | JuneQuarter2017Q2 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