Page 25 - REIWA.com Market Update / June Quarter 2017

PERTH SOUTH WEST SUB-REGION10YeMEDIAN PRICE (PRELIM)MULTI-RESIDENTIALThe multi-residential market in the South West sub-region is the smallest part of the property market with 10 per cent of sales accounted for in the June quarter across houses, units and land.There were 89 preliminary sales for the June quarter, compared to 136 recorded in the March quarter 2017 and 103 for the same time last year. This represents declines of 34.6 per cent on a quarterly basis and 13.6 per cent annually.$339kAs was similarly observed in the housing market in this sub-region, unit sales are below the 10 year average of 136, down by only 34.6 per cent. This is a similar gure to the declining trends experienced in the established housing market.92.1 per cent of multi-residential transactions in the South West sub-region occur at the price range under $500,000 with trade-up activity ($500,000 plus) only representing 7.9 per cent of total multi-residential sales.Source: Landgate/REIWA ©QUARTERLY CHANGE-3.1%SALES VOLUME (PRELIM)89QUARTERLY CHANGE-34.6%SOUTH WEST SUB-REGION MULTI-RESIDENTIAL MARKETLISTINGS FOR SALE$400,000 $380,000 $360,000 $340,000 $320,000 $300,000 $280,000250 200 150 100 50 0336AVE SELLING DAYS92ar Average SalesMedian Multi-Residential Price (LHS)% SELLERS DISCOUNTING66.2%AVE DISCOUNT OFFERED-8.06%Multi-Residential Sales (RHS)LANDMEDIAN PRICE (EST)Land sales are the second biggest part of the property market in this sub-region, representing 17.4 per cent of total transactions. The preliminary results indicate sales for the June quarter are at 155 which is 62.8 per cent lower than the March quarter. However, REIWA expects land sales to li to around 300 in coming weeks which would result in a 28.1 per cent decline in activity once June quarter transactions have fully settled.$250kThe 10 year average price for land in the sub-region is $223,072. Prices in the land market over the last year have hovered between $220,000 and $250,000, and is heavily in uenced by the number of sales. The preliminary median land price for the June quarter is $250,000, well above the 10 year average.Of more interest though, is the price per square metre in the sub-region. Lots under 320 m2 attract a price of $696 per square metre, whilst the more common lots between 320 m2 and 499 m2 cost $659 per square metre.QUARTERLY CHANGE15.2%SALES VOLUME (EST)300QTLY CHANGE (EST)-28.1%SOUTH WEST SUB-REGION VACANT LAND MARKETSource: Landgate/REIWA ©1,200 1,000 800 600 400 200 0LISTINGS FOR SALE703$270,000 $250,000 $230,000 $210,000% SELLERSDISCOUNTING $190,000$150,000AVE SELLING DAYS12710 Year Average SalesMedian Land Price (LHS)42.28% $170,000AVE DISCOUNT OFFERED-9.67 %Land Sales (RHS)REIWA.COMMARKETUPDATE | JuneQuarter2017 | 25Q2 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