reiwa.com Market Update Q4

Page 1

MARKET UPDATE DECEMBER 2017 QUARTER

Kimberley

FEATURE:

Reflecting on 2017

Pilbara

Gascoyne

REGIONAL SPOTLIGHT:

CARNARVON

Mid West

PAGE 30

Goldfields-Esperance

Wheatbelt

Peel

South West Great Southern


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CONTENTS

5

8

Perth Metro housing, multi-residential and land market

11

12

Perth Central sub-region

15

Perth North West sub-region

18

21

24

27

32

Centre Spread

Economic overview

Perth South East sub-region

Perth South West sub-region

Perth rental report

Lift-out colour maps

EDITOR & ANALYSTS Ronak ­­Bhimjiani, Dillon Kanbi

CONTACT REIWA PO Box 8099, Subiaco East 6008 TEL (08) 9380 8222 FAX (08) 9380 8289

PRODUCTION & DESIGN Adam Carriero REIWA MARKETING Jasmin Chiellini PRINTING Printforce

SUBSCRIPTION research@reiwa.com.au

Feature: Reflecting on 2017

Perth North East sub-region

Regional WA report


R E I WA C E N T E N A RY EXHIBITION FROM THURSDAY 1 MARCH TO THURSDAY 31 MAY 2018 AT THE STATE LIBRARY OF WESTERN AUSTRALIA, GROUND FLOOR GALLERY ENTRANCE IS F R E E With a century of experience, we know WA real estate better than anyone.

reiwa.com/members/centenary | reiwa.com/about-us


WA ECONOMIC OVERVIEW

$526,700

+0.4%

-7.0%

5.20%

5.80%

+2.1%

+0.8

+3.0%

-2.7%

MEDIAN HOUSE 1 PRICE

HOUSE PRICE GROWTH

HOME LOAN INTEREST

INVESTOR LOAN INTEREST

POPULATION GROWTH

JOB GROWTH

$ +0.8%

+1.3%

STATE FINAL DEMAND

3

HOUSEHOLD CONSUMPTION

1

Median house price data based on Q4 2017 figures for the Perth Metro region

2

Housing stock growth represents annual change in total residential dwellings in Western Australia

3

State Final Demand (SFD) represents economic output, excluding international trade

DWELLING SALES ACTIVITY

HOUSING STOCK2 GROWTH

ECONOMIC GROWTH

CPI

+0.8% CONSUMER PRICE INDEX

N.B. All percentage changes are annual. The latest quarter property data is derived from reiwa.com with all comparisons made against Landgate settled data.

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

5


WA ECONOMIC OVERVIEW

The Western Australian economy is showing signs of strength as it enters 2018. The Perth median house price increased during the December 2017 quarter for the first time since the December 2016 quarter when observed on a quarterly basis. State Final Demand, a measurement of local economic activity without international trade, is growing at 1.3 per cent per year, which is the fastest pace we’ve seen since March 2014. Households are feeling better about conditions in the economy, with sentiment improving to it’s strongest level since May 2014. This is reflected in household consumption patterns which have continued to show resilience despite the subdued trends witnessed in other parts of the economy. The labour market has also continued to build momentum, with more people participating in the search for employment as well as a greater number of jobs being created. Total employment levels are now the highest they have ever been, with approximately 1.3 million people employed. Combined with a greater number of job vacancies, employment conditions are expected to improve further in 2018. Population growth is slowly beginning to recover, having attracted approximately 80,726 migrants into WA over the last 12 months. As conditions in the local economy improve, fewer people are moving away which has provided support to population growth. The current estimated resident population in WA is 2.58 million, up 0.8 per cent from a year ago. Looking forward, there are signs of optimism across the broader economy for 2018, which should flow on to the real estate market. As more jobs are created, more people will be enticed to move into WA in pursuit of the unique lifestyle the state has to offer. Population is the fundamental driver of demand for property and will provide the greatest support for real estate in the coming years.

STATE FINAL DEMAND

Sep 2017

Mar 2017

Mar 2014

Mar 2013

Sep 2012

Mar 2012

Mar 2011

WA State Final Demand (LHS)

Sep 2016

-15.0% Mar 2016

$30.0 Sep 2015

-10.0% Mar 2015

$35.0 Sep 2014

-5.0%

Sep 2013

$40.0

Sep 2011

0.0%

Sep 2010

5.0%

$45.0

Mar 2010

$50.0

Sep 2009

10.0%

Mar 2009

$55.0

Sep 2008

15.0%

Mar 2008

$60.0

Sep 2007

$ BILLIONS

20.0%

source: ABS 5206

$65.0

State Final Demand Growth Rate (RHS)

HOUSEHOLD CONSUMPTION source: ABS 5206

10.0%

$28.0 $25.0

8.0% 6.0%

$24.0 $23.0

4.0%

$22.0

2.0%

$21.0

WA Household Consumption (LHS)

6

|

REIWA.COM MARKET UPDATE

| December 2017 quarter

Household Consumption Growth Rate (RHS)

Sep 2017

Mar 2017

Sep 2016

Mar 2016

Sep 2015

Mar 2015

Sep 2015

Mar 2014

Sep 2013

Mar 2013

Sep 2012

-2.0% Mar 2012

Sep 2011

Sep 2010

Mar 2010

Sep 2009

Mar 2009

Sep 2008

Mar 2008

Sep 2007

Mar 2011

00.0%

$20.0 $19.0

PER CENT (%)

$ BILLIONS

$26.0 $25.0


WA ECONOMIC OVERVIEW LABOUR MARKET 6.0% 5.0%

1.40 Mln 1.35 Mln

4.0%

1.30 Mln

3.0% 2.0%

MILLIONS

1.25 Mln

1.0%

1.20 Mln

0.0% -1.0%

1.15 Mln

-2.0% -3.0% Sep 2017

Mar 2017

Sep 2016

Mar 2016

Sep 2015

Mar 2015

Sep 2014

Mar 2014

Sep 2013

Mar 2013

Sep 2012

Mar 2012

Sep 2011

Mar 2011

Sep 2010

Mar 2010

Sep 2009

Mar 2009

Sep 2008

Mar 2008

Sep 2007

1.0 Mln

Employment Levels (LHS)

Annual Job Growth (RHS)

Full-time Employed

Part-time Employed Unemployed Not in the labour force

POPULATION GROWTH 2.7

4.5%

source: ABS 5206

2.6

3.5%

2.5

3.0% 2.5%

MILLIONS

2.4

2.0%

2.3

1.5%

2.2

1.0%

Jun 2017

Dec 2016

Jun 2016

Jun 2015

Mar 2016

Dec 2015

Dec 2014

Jun 2014

Dec 2013

Jun 2013

Dec 2012

Jun 2012

Dec 2015

WA Population

Dec 2011

Jun 2011

Dec 2010

Jun 2010

Dec 2009

Jun 2009

Dec 2008

Jun 2008

0.0%

Dec 2007

0.5%

2.0 Jun 2007

2.1

Population Growth Rate

MIGRATION ACTIVITY 40,000 30,000 20,000 10,000 0 -10,000 -20,000

Migration Departures

Migration Arrivals

Jun 2017

Mar 2017

Dec 2016

Sep 2016

Jun 2016

Sep 2015

Jun 2015

Mar 2015

Dec 2014

Sep 2014

Jun 2014

Mar 2014

Dec 2013

Sep 2013

Jun 2013

Mar 2013

Dec 2012

Sep 2012

Jun 2012

-30,000

Net Migration

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

7


PERTH METRO REGION HOUSES

SALES

5,254 SALES PERCENTAGE CHANGE QRT

9.4%

UPPER QUARTILE

$760k MEDIAN

$526.7k LOWER QUARTILE

$405k QRTLY CHANGE IN MEDIAN

3.3%

For the December 2017 quarter, the preliminary median house price in the Perth Metropolitan region is $516,000. However, reiwa.com data suggests the final median will settle close to $526,700 once all transactions settle. This represents a 3.3 per cent increase in the quarterly median house price. Landgate reports 3,999 house transactions have settled for the quarter so far, but reiwa.com sales data suggests the final settled figure will increase to 5,254. This represents a 9.4 per cent increase in transactions against the September 2017 quarter’s settled figure of 4,803. Early Landgate data indicates that houses which sold at $1 million or more accounted for 11.3 per cent of all house sale transactions, approximately a quarter of all house sales were at or below $400,000 and about half of all house sales occurred between $400,000 and $700,000. On 31 December 2017, 7,773 houses were listed for sale on reiwa.com. Of all house listings on reiwa.com, it took an average of 60 days to sell by private treaty, 10 days less than the September 2017 quarter. During the December 2017 quarter, approximately 50 per cent of sellers discounted their property and properties sold at an average discount of 6.7 per cent from their original listed price. PERTH METRO HOUSE SALES PRICE DISTRIBUTION

Source: Landgate/REIWA ©

Over $1.5 million $1 - $1.5 million $900 - $1 million $800 - $900,000 $700 - $800,000 $650 - $700,000 $600 - $650,000 $550 - $600,000 $500 - $550,000 $450 - $500,000 $400 - $450,000 $350 - $400,000 $300 - $350,000 $200 - $300,000 Up to $200,000 0%

2%

4%

6%

September QTR 2017

8%

10%

12%

14%

December QTR 2017

PERTH METRO REGION HOUSING MARKET

Source: Landgate/REIWA ©

10,000

$570,000

House Sales (RHS)

8

|

REIWA.COM MARKET UPDATE

| December 2017 quarter

Median House Price (LHS)

10 YEAR AVERAGE SALES

Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

0

Q2 2015

1,000

$470,000

Q1 2015

2,000

$480,000 Q3 2014

3,000

$490,000

Q3 2014

4,000

$500,000

Q2 2014

5,000

$510,000

Q1 2014

6,000

$520,000

Q4 2013

7,000

$530,000

Q3 2013

$540,000

Q1 2013

8,000

Q2 2013

9,000

$550,000

Q4 2012

$560,000


PERTH METRO REGION MULTI-RESIDENTIAL For the December 2017 quarter, Landgate reported that the median unit price in the Perth Metro region is $405,000, which matches the latest reiwa.com data estimates. This represents a 1.3 per cent increase in the quarterly median unit price. SALES

Landgate also reported that 947 unit transactions have settled for the latest quarter. However, reiwa.com data suggests this figure will increase to 1,121, which represents a five per cent increase on the September 2017 quarter settled figure of 1,068.

SALES PERCENTAGE CHANGE QRT

Looking at the composition of sales by dwelling type, unit sales made up 31 per cent of all transactions followed by villas, apartments, townhouses and flats.

UPPER QUARTILE

On 31 December 2017, there were 2,746 unit listings for sale on reiwa.com. The average time to sell a unit was 78 days, a decrease of eight days from the September 2017 quarter.

1,121 5.0%

$530k MEDIAN

$405k LOWER QUARTILE

$302k QRTLY CHANGE IN MEDIAN

1.3%

PERTH METRO REGION MULTI-RESIDENTIAL MARKET

Source: Landgate/REIWA ©

$470,000

2,500

$460,000 $450,000

2,000

$440,000 $430,000

1,500

$420,000 $410,000

1,000

$400,000 $390,000

500

$380,000 $370,000

Multi-Residential Sales (RHS)

Median Multi-Residential Price (LHS)

Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q1 2016

Q2 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q1 2013

Q2 2013

Q4 2012

0

10 YEAR AVERAGE SALES

VACANT LAND For the December 2017 quarter, the median price for a parcel of vacant land in the Perth Metro region is $305,450. reiwa.com data suggests the final median will settle close to $285,000 once further transactions settle, up 7.3 per cent on the September 2017 quarter median land price. A total of 552 vacant land transactions have settled for the quarter so far, but reiwa.com data suggests the final settled figure will increase to 769. This would represent a 40.5 per cent decrease in transactional activity against the September 2017 quarter’s settled figure of 1,292.

SALES

769 SALES PERCENTAGE CHANGE QRT

By land size, 36 per cent of transactions occurred on lots less than 320 square meters, whilst 41 per cent were for vacant land with an area of 320 to 499 square meters. Transactions for land over 600 square meters comprised 11 per cent of activity.

UPPER QUARTILE

On 31 December 2017, there were 2,561 vacant land listings for sale on reiwa.com. The average time to sell vacant land totalled 100 days which is two days less than it took during the September 2017 quarter.

4,000

$290,000

3,500

$270,000

3,000

$250,000

2,500

Vacant Land Sales (RHS)

Median Land Price (LHS)

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q1 2016

Q2 2016

0 Q4 2015

500

$150,000 Q3 2015

1,000

$170,000 Q2 2015

1,500

$190,000

Q1 2015

2,000

$210,000

Q4 2014

$230,000

Q3 2014

7.3

%

4,500

Q2 2014

QRTLY CHANGE IN MEDIAN

Source: Landgate/REIWA ©

$310,000

Q1 2014

$215

k

Q4 2013

LOWER QUARTILE

PERTH METRO REGION VACANT LAND MARKET

Q3 2013

$285k

Q1 2013

MEDIAN

Q2 2013

$402k

Q4 2012

-40.5%

10 YEAR AVERAGE SALES

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

9


PERTH METRO REGION LISTING STOCK AND SELLING DAYS On 31 December 2017, the total number of listings for sale on reiwa.com counted 13,080 across houses, units, and vacant land. This is 0.4 per cent higher than levels seen during the September 2017 quarter. On average, it took 66 days to sell (dwellings and vacant land aggregated) during this time. TOTAL LISTINGS ARE UP

0.4% TO

13,080

PERTH METRO REGION LISTING STOCK AND SELLING DAYS

Source: Landgate/REIWA ©

18,000

80

16,000

70

14,000

60

12,000

50

10,000

40

8,000

30

6,000 4,000

20

2,000

10

0

Listings for Sale (LHS)

Q4 2017

Q3 2017

Q1 2016

Q2 2017

Q4 2016

Q3 2016

Q1 2016

Q2 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q3 2012

0

Average Selling Days (RHS)

SELLER SENTIMENT While overall market sentiment in the Perth Metro region remains soft at -0.34 per cent, it has continued to improve in comparison to the September 2017 quarter and the same time last year. Current sentiment levels are now approaching levels last witnessed during the June 2014 quarter.

48.6% OF SELLERS ARE DISCOUNTING

SELLERS ARE DISCOUNTING BY

6.7%

Approximately 50 per cent of vendors continue to offer some form of discount on their listed property. The average discount rate decreased marginally to 6.72 per cent from 7.00 per cent. Looking at discounting by price range, properties priced between $350,000 and $600,000 average a market discount of 6.05 per cent. In contrast, properties sold in the $600,000 to $1 million price range offer a lower discount of 5.58 per cent. Properties priced above $1 million offer the highest discount rate, with an average discount of 8.22 per cent. PERTH METRO REGION DISCOUNTING AND SELLER SENTIMENT

Source: REIWA ©

70.0 %

4.0 %

60.0 %

2.0 %

50.0 %

0.0 %

Neutral Market Sentiment

40.0 %

-2.0 %

30.0 %

-4.0 %

20.0 %

-6.0 %

10.0 %

-8.0 % -10.0 %

Vendors Discounting (LHS)

10

|

REIWA.COM MARKET UPDATE

| December 2017 quarter

Average Market Discount (RHS)

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2014

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

0.0 %

Overall Market Sentiment (RHS)


FEATURE

REFLECTING ON 2017 After witnessing softer trends in major economic variables over the past three years, 2017 saw the Western Australian economy transition towards a more ’neutral‘ position. Early signs indicate the worst of the downturn may be behind us, and it remains to be seen whether WA is now able to build on the positive trends in 2018. The WA housing market in 2017 could be simply described as resilient. Conditions in the market were boosted by higher transaction levels in both the established and rental space, with supply levels in both markets trending lower over the year. This ensured steadiness in median prices across rental and established properties.

OUTLOOK FOR 2018 Property lending conditions are predicted to remain favourable, especially for owner occupier loans, and these trends are expected to continue in 2018. However, regulatory measures, introduced by the Australian Prudential Regulation Authority (APRA) to reinforce residential mortgage lending practices predominantly aimed at the East Coast markets, has had an impact on WA property investors in the form of increased borrowing costs. With the Sydney residential market finally showing signs of cooling down, APRA’s involvement in 2018 may be limited. The WA economy and property market is predicted to build on the improved market conditions noted in 2017. Any strength in the broader economy should ultimately provide support to the local real estate market in 2018.

INSYNC FOR 2018 More jobs

Population trends steady

Households feel more secure

Consumer sentiment to improve

Up-tick in consumer sentiment

New supply of stock to bottom out

Stable interest rates environment

Increase in household consumption

Strong economy

Uptick in employment growth

House sales to trend close to 2017 levels

Stimulated migration activity

Increased demand for housing More jobs

Rental market trends to stabilise

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

11


PERTH CENTRAL SUB-REGION OVERVIEW The population of Perth’s Inner region is growing at 0.2 per cent per annum with an estimated 178,859 persons residing in the area as at June 2016. The region represents a high densified area with approximately 1,939 people occupying a square kilometre. Despite being well densified with a number of high-rise projects, targeted medium density is still needed. The Central sub-region has the greatest proportion of dwelling sales occurring in the Perth Metro region, with 49.7 per cent of total sales. Landgate reported a 20.7 per cent decline in dwelling sales in the Central sub-region in the September 2017 quarter. However, the latest reiwa.com data indicates that dwelling sales during the December 2017 quarter will increase to 3,149, which would represent a 10.6 per cent increase in activity levels once further transactions settle. Source: Landgate/REIWA ©

Sales

Lower Quartile

Median

Upper Quartile

QRTLY change in QRTLY Median

House

1,766

$515,000

$717,250

$985,000

0.3%

Multi-Res

840

$320,000

$422,000

$565,000

-4.1%

Land

140

$393,000

$565,000

$683,500

39.5%

HOUSES Preliminary house sales in the Central sub-region decreased by 13.7 per cent compared to the September 2017 quarter figure of 1,980. reiwa.com data indicates house sales in the sub-region will increase to 2,211 once further transactions settle. This would represent an increase of 11.7 per cent in activity levels for the December 2017 quarter. MEDIAN PRICE

$735k

The 10 year average for house sales in the sub-region is 2,701 per quarter. Current activity is trending marginally lower in comparison to the long-term average.

QRTLY CHANGE

More interestingly, the greatest proportion of house sales (48.5 per cent) are occurring in the over $725,000 price range, with traditional first home buyer territory (under $500,000) only making up 22.1 per cent of activity in the sub-region.

11.4% SALES VOLUME

2,211 QRTLY CHANGE

11.7

%

LISTINGS FOR SALE

CENTRAL SUB-REGION HOUSING MARKET

Source: Landgate/REIWA ©

4,000

$760,000

3,500

$740,000 $720,000

3,000

$700,000

2,271

2,500

$680,000

2,000

$660,000

AVE SELLING DAYS

1,500

48

$640,000 $620,000

1,000

%

N.B. above figures are based on latest reiwa.com data

12

|

10 Year Average Sales

Q4 2017

Q3 2017

Q2 2017

Q4 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2013

HOUSE SALES

AVE DISCOUNT OFFERED

-6.9

Q4 2013

Q3 2013

Q2 2013

$560,000 Q1 2013

41.1

%

$580,000

0

Q4 2012

% SELLERS DISCOUNTING

$600,000

500

HOUSE MEDIAN

TOP 5 SUBURBS BY QUARTERLY CHANGE IN PRICE Year to December 2017

Source: Landgate/REIWA ©

Central Sub-Region

House Sales

Median Price

Highest Price

City Beach

84

$1,781,000

$5,750,000

7.9%

North Fremantle

30

$1,150,000

$2,570,000

7.5%

White Gum Valley

41

$738,000

$1,450,000

7.3%

Dalkeith

58

$2,600,000

$4,800,000

6.1%

Bicton

79

$1,012,000

$3,900,000

6.0%

N.B. filtered for 30 or more sales per suburb.

REIWA.COM MARKET UPDATE

| December 2017 quarter

QRTLY Change in Annual Median


PERTH CENTRAL SUB-REGION MULTI-RESIDENTIAL The Central sub-region’s multi-residential market has performed in a similar fashion to the housing market in terms of sales activity. Preliminary unit sales in the Central sub-region decreased by nine per cent against the September 2017 quarter figure of 866. However, reiwa.com data indicates unit sales in the sub-region will increase to 938 once further transactions settle, which would represent an increase of 8.3 per cent.

MEDIAN PRICE

$425 k 1.2% QRTLY CHANGE

SALES VOLUME

938

As was observed in the housing market, unit sales are trending below the 10 year average of 1,371. The top five performing suburbs for sales in the December 2017 quarter were East Perth (61), Maylands (47), Scarborough (39), Perth (37) and Como (36). A significant proportion of transactions in the Central sub-region occur at the $150,000 -500,000 price range (68.4 per cent of total unit sales). On the other hand, the luxury market (above $725,000) accounts for 6.9 per cent of total unit transactions.

QRTLY CHANGE

8.3%

CENTRAL SUB-REGION MULTI-RESIDENTIAL MARKET

LISTINGS FOR SALE

2,000

1,999

AVE SELLING DAYS

74

Source: Landgate/REIWA ©

$520,000

1,800

$500,000

1,600 1,400

$480,000

1,200

$460,000

1,000

$440,000

800

% SELLERS DISCOUNTING

45.9

%

600

$420,000

400

$400,000

200

MULTI-RES SALES

10 Year Average Sales

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q4 2014

Q4 2013

Q3 2013

Q2 2013

$380,000 Q4 2013

-7.4

0

%

Q4 2012

AVE DISCOUNT OFFERED

MULTI-RES MEDIAN

LAND Land is scarce in the Central sub-region and this is shown by the premium paid for land in this region compared to the overall market. For the December 2017 quarter, 130 land parcels have settled so far, 50.9 per cent lower than the September 2017 quarter. However, land sales are expected to increase to 275 once further transactions settle. MEDIAN PRICE

$475

k

QRTLY CHANGE

10.5% SALES VOLUME

275

Landgate reports that the median price for vacant land in the Central sub-region increased by a significant 31.4 per cent during the December 2017 quarter to $565,000. The latest reiwa.com data indicates the median will eventually settle lower, to around $475,000, which would still represent a 10.5 per cent increase in the quarterly median price. Of more interest is the price per square metre. Land is more expensive per square metre in the Central sub-region, with lots under 320 square metres attracting a price of approximately $1,600 and the more common 320 – 499 square metre lots costing $1,134 per square meter.

QRTLY CHANGE

350

AVE SELLING DAYS

300

$300,000 $200,000

150 100

$100,000

LAND SALES

10 Year Average Sales

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

0

Q2 2014

50 Q1 2014

-7.5%

250 200

Q4 2013

AVE DISCOUNT OFFERED

$400,000

Q3 2013

42.0%

$500,000

400

Q2 2013

% SELLERS DISCOUNTING

$600,000

450

394 96

Source: Landgate/REIWA ©

500

Q1 2013

LISTINGS FOR SALE

CENTRAL SUB-REGION VACANT LAND MARKET

Q4 2012

-34.0%

$0

10 Year Average Sales

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

13


PERTH CENTRAL SUB-REGION SUBURB SPOTLIGHT

Explore City Beach Sales activity in City Beach increased during the December 2017 quarter. A total of 15 house transactions have settled so far at a median house price of $2.15 million. reiwa.com data suggests that once further transactions settle, total house sales will count close to 16 with a median price of approximately $2.25 million. This would represent a median house price increase of 28.6 per cent in the December 2017 quarter and a 14.3 per cent increase in sales activity. The number of houses for sale in City Beach decreased by 7.7 per cent in the December 2017 quarter and are 45.5 per cent lower than the December 2016 quarter. The average time to sell a house has increased by 28 days to 79 days. REIWA members reported there were 22 total properties (houses and units) leased over the quarter, which is an increase of 10 per cent on the September 2017 quarter. The overall median weekly rent in the area came in at $723 per week for the quarter which is $127 lower than the September 2017 quarter. CITY BEACH HOUSING MARKET

Source: Landgate/REIWA ©

40

$2,500,000

35 $2,000,000

30 25

$1,500,000

20 $1,000,000

15 10

$500,000

5

$0

HOUSE SALES

HOUSE MEDIAN

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

0

10 YEAR AVERAGE SALES

CITY BEACH RENTAL MARKET

Source: Landgate/REIWA ©

30

$1,400

25

$1,200 $1,000

20

$800 15

$600

10

$400

DWELLINGS LISTED FOR RENT

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Houses

Quarterly Change

Annual Change

Median Price

$2,250,000

28.6%

45.6%

Sales Volume

16

14.3%

-50.0%

Listings for Sale

12

-7.7%

-45.5%

Average Selling Days

79

+28

+36

Average Discount

-4.7%

3.1 % pts

5.3% pts

Median Weekly Rent

$725

-$125

$30

Properties Leased

21

5.0%

-16.0%

Listings for Rent

8

-46.7%

-50.0%

For more information about your suburb, visit |

OVERALL MEDIAN RENT

City Beach Q4 2017

Note: the above figures are based on latest reiwa.com data

14

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

0

Q1 2013

$200 $0 Q4 2012

5

REIWA.COM MARKET UPDATE

| December 2017 quarter


PERTH NORTH WEST SUB-REGION OVERVIEW The population of Perth’s North West sub-region is growing at 0.8 per cent per annum, with an estimated 557,581 persons residing in the area as at 30 June 2016. The sub-region represents a medium densified area with approximately 630 people occupying a square kilometre. The growth of the northern metropolitan corridor has seen significant investment in retail and commercial markets. The North West sub-region represents the second largest proportion of dwelling sales in the Perth Metro region, representing 15.9 per cent of total sales for the December 2017 quarter. Landgate reported that dwelling sales in the sub-region are 16.6 per cent lower compared to the September 2017 quarter. reiwa.com data indicates December 2017 quarter dwelling sales will increase to 1,081 once further sales settle, which would represent a 9.9 per cent increase in activity levels. Source: Landgate/REIWA ©

House

Sales

Lower Quartile

Median

Upper Quartile

QRTLY change in QRTLY Median

807

$401,500

$485,000

$610,250

-4.9%

Multi-Res

44

$285,000

$361,250

$447,500

-3.0%

Land

126

$215,000

$297,500

$430,000

17.6%

HOUSES Preliminary house sales activity declined 17.7 per cent compared to the September 2017 quarter figure of 946. reiwa.com data indicates house sales in the sub-region will lift to around 1,037 once further transactions settle. This would represent an increase of 9.6 per cent in activity levels for the December 2017 quarter.

1,200

$520,000

1,000

$510,000

800

$500,000

-5.6 %

N.B. above figures are based on latest reiwa.com data

HOUSE SALES

10 Year Average Sales

Q4 2017

AVE DISCOUNT OFFERED

Q3 2017

$460,000 Q1 2017

$470,000

0 Q2 2017

200 Q4 2016

$490,000 $480,000

Q3 2016

600 400

Q2 2016

44.1

%

$530,000

Q1 2016

% SELLERS DISCOUNTING

$540,000

1,400

Q4 2015

55

$550,000

1,600

Q3 2015

AVE SELLING DAYS

$560,000

1,800

Q1 2015

1,484

Source: Landgate/REIWA ©

2,000

Q2 2015

LISTINGS FOR SALE

NORTH WEST SUB-REGION HOUSING MARKET

Q4 2014

9.6

%

Q3 2014

QRTLY CHANGE

Q2 2014

1,037

Q1 2014

SALES VOLUME

Just over 50 per cent of house sales in this sub-region are priced under $500,000, whilst 25.6 per cent of transactions occur in the trade-up and luxury markets ($625,000 plus). This is not surprising given the number of northern coastal suburbs located within this sub-region.

Q4 2013

Q3 2013

2.0 %

Q2 2013

QRTLY CHANGE

The 10-year average for house sales in the sub-region is 1,338 per quarter. Current activity is lower but certainly not far off the long-term average. The last time sales activity reached these levels was during the most recent ‘population boom’ during 2012-14.

Q1 2013

$500k

Q4 2012

MEDIAN PRICE

HOUSE MEDIAN

TOP 5 SUBURBS BY QUARTERLY CHANGE IN PRICE Year to December 2017

Source: Landgate/REIWA ©

House Sales

Median Price

Highest Price

QRTLY Change in QRTLY Median

Iluka

48

$847,500

$1,460,000

3.6%

Hillarys

141

$830,000

$2,375,000

3.3%

Currambine

72

$539,500

$800,000

2.8%

Two Rocks

40

$375,000

$770,000

1.6%

Connolly

42

$650,000

$1,150,000

1.6%

N.B. filtered for 30 or more sales per suburb.

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

15


PERTH NORTH WEST SUB-REGION MULTI-RESIDENTIAL

MEDIAN PRICE

$318.7k QRTLY CHANGE

-6.3% SALES VOLUME

44

QRTLY CHANGE

15.8% LISTINGS FOR SALE

190

The North West multi-residential market is small, representing 4.4 per cent of total unit sales in the Perth Metro region. There were 42 preliminary sales for the December 2017 quarter, compared to 38 recorded during the September 2017 quarter and 60 for the same time in 2016. Preliminary sales increased by 10.5 per cent over the quarter, with reiwa.com data indicating multi-residential sales will lift to 44 sales in coming weeks, which would be an increase of 15.8 per cent on the September 2017 quarter. The State Government’s announcement to deliver the Yanchep rail line extension as part of Metronet is expected to present a great opportunity for further investment in this sub-region. The 10-year average for unit sales is 84 transactions, with current market activity well below this figure. With the upcoming public sector investment in infrastructure across rail and roads in this sub-region, a focus for the North-West sub-region should be made on finding suitable suburbs for densification and improved lifestyle living. Of the small number of multi-residential sales, 46.3 per cent of transactions occur under $360,000, whilst 36.6 per cent of multi-residential transactions are sold between $360,000 and $500,000. NORTH WEST SUB-REGION MULTI-RESIDENTIAL MARKET

AVE SELLING DAYS

99

Source: Landgate/REIWA ©

$450,000

140

$400,000

120

60

$200,000 $150,000

40

$100,000

20

MULTI-RES SALES

10 YEAR AVERAGE SALES

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q4 2012

Q1 2014

$50,000

0

Q4 2013

-7.1

%

$250,000

Q3 2013

AVE DISCOUNT OFFERED

$300,000

80

Q2 2013

54.6

%

$350,000

100

Q1 2013

% SELLERS DISCOUNTING

$0

MULTI-RES MEDIAN

LAND There were 123 preliminary land sales recorded for the December 2017 quarter, a significant drop compared to those settled during the September 2017 quarter. With the lag in land settlements, reiwa.com data indicates sales will eventually lift to approximately 169 transactions. This would represent a 33.5 per cent decline in quarterly transactions. MEDIAN PRICE

$330k QRTLY CHANGE

17.8% SALES VOLUME

169

QRTLY CHANGE

-33.5%

Prices in the land market have continued to remain strong in this sub-region, recording a December 2017 quarterly figure of $330,000, compared to $280,250 during the September 2017 quarter. In this challenging property market, it is encouraging to see this quarter’s median price result exceed the 10 year average of $256,753. The bulk of vacant land blocks in the North West sub-region are sized under 499 square metres, with 79 sales occurring in this land area range. Price per square metre is at a premium in this subregion, ranking second within the Perth Metro region, where lots between 320 square metres and 499 square metres cost $765 per square metre. NORTH WEST SUB-REGION VACANT LAND MARKET

Source: Landgate/REIWA ©

LISTINGS FOR SALE

$150,000 400

$100,000

200

LAND SALES

16

|

REIWA.COM MARKET UPDATE

| December 2017 quarter

10 YEAR AVERAGE SALES

LAND MEDIAN

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

0

$50,000 Q2 2014

-8.6%

$200,000 600

Q1 2014

AVE DISCOUNT OFFERED

$250,000

800

Q4 2013

34.3%

$300,000

Q3 2013

% SELLERS DISCOUNTING

1,000

Q2 2013

115

$350,000

Q1 2013

AVE SELLING DAYS

1,200

Q4 2012

410

$0


PERTH NORTH WEST SUB-REGION SUBURB SPOTLIGHT

Explore Currambine Sales activity in Currambine increased during the December 2017 quarter. A total of 14 house transactions have settled so far at a median house price of $555,000. reiwa.com data suggests that once further transactions settle, total house sales will increase to 19 with a median price of approximately $550,000. This would represent a 5.3 per cent improvement in the median house price over the latest quarter and a 90 per cent increase in sales activity. House listings for sale in Currambine increased by 8.7 per cent in the December 2017 quarter and are 31.6 per cent higher than the same time last year. The average time to sell a house in Currambine increased by 11 days to 60 days. REIWA members reported 45 total properties (houses and units) leased over the quarter, a decrease of 4.3 per cent. The overall median weekly rent in the area came in at $390 per week for the quarter which is $40 higher than the September 2017 quarter. CURRAMBINE HOUSING MARKET

Source: Landgate/REIWA ©

40

$700,000

35

$600,000

30

$500,000

25

$400,000

20

$300,000

15

HOUSE SALES

Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q1 2014

Q2 2014

Q4 2013

Q3 2013

Q2 2013

$100,000 Q1 2013

$200,000

5 Q4 2012

10

10 YEAR AVERAGE SALES

HOUSE MEDIAN

CURRAMBINE RENTAL MARKET

Source: Landgate/REIWA ©

$600

45 40

$500

35 $400

30 25

$300

20 $250

15 10

$100

DWELLINGS LISTED FOR RENT

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q1 2013

Q2 2013

Q4 2012

5

OVERALL MEDIAN RENT

Currambine Q4 2017

Houses

Quarterly Change

Annual Change

Median Price

$550,000

5.3%

13.4%

Sales Volume

19

90.0%

-58.3%

Listings for Sale

25

8.7%

31.6%

Average Selling Days

60

+11

-6

Average Discount

-7.2%

-1.6 % pts

-1.6 % pts

Median Weekly Rent

$425

-$27

$25

Properties Leased

32

14.3%

33.3%

Listings for Rent

21

5.0%

0.0%

N.B. above figures are based on latest reiwa.com data

For more information about your suburb, visit

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

17


PERTH NORTH EAST SUB-REGION OVERVIEW The population of Perth’s North East sub-region is growing at 1.4 per cent per annum with an estimated 259,908 persons residing in the area as at June 2016. The region represents a low densified area with approximately 147 people occupying a square kilometre. The North East sub-region represents the smallest proportion of dwelling sales in the Perth Metro region, with 9.6 per cent of total sales for the December 2017 quarter. Landgate reported dwelling sales in the North East sub-region are 30.5 per cent lower than in the September 2017 quarter. The latest reiwa.com data suggests dwelling sales during the December 2017 quarter will increase to 612 once all transactions settle, which would represent a 3.6 per cent increase in activity levels. Source: Landgate/REIWA ©

Sales

Lower Quartile

Median

Upper Quartile

QRTLY change in QRTLY Median

House

459

$365,000

$440,000

$550,000

-2.2%

Multi-Res

21

$260,000

$300,000

$384,500

-15.2%

Land

119

$215,000

$249,000

$339,000

3.8%

HOUSES Preliminary house sales in the North East sub-region decreased by 29.3 per cent compared to the September 2017 quarter figure of 556. reiwa.com data indicates house sales will increase to 582 once further transactions settle, representing a 4.7 per cent increase in activity levels.

QRTLY CHANGE

1.1

%

SALES VOLUME

582

The majority of house sales (68.9 per cent) are priced below $500,000. Trade-up activity ($500,000 to $725,000) represents 24.2 per cent of sales, whilst only 6.9 per cent of activity in the North East sub-region occurs at the higher end of the market (above $725,000). NORTH EAST SUB-REGION HOUSING MARKET

600 $440,000 400

$420,000

HOUSE SALES

AVE DISCOUNT OFFERED

-6.7%

N.B. above figures are based on latest reiwa.com data

18

|

10 Year Average Sales

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

$380,000

%

Q1 2015

$400,000

0

Q4 2014

200

Q3 2014

52.1

$460,000

Q2 2014

% SELLERS DISCOUNTING

$480,000

800

Q1 2014

75

$500,000

Q4 2013

AVE SELLING DAYS

1,000

Q3 2013

1,155

$520,000

Q2 2013

LISTINGS FOR SALE

1,200

Q1 2013

4.7

%

Q4 2012

QRTLY CHANGE

Source: Landgate/REIWA ©

Q4 2017

$455k

The 10-year average for house sales in the sub-region is 780, so clearly current activity is lower than the long-term average. The last time sales activity in the North East sub-region was at these levels was during 2008.

Q3 2017

MEDIAN PRICE

HOUSE MEDIAN

TOP 5 SUBURBS BY QUARTERLY CHANGE IN PRICE Year to December 2017

Source: Landgate/REIWA ©

House Sales

Median Price

Highest Price

Forrestfield

167

$400,000

$900,000

2.6%

Glen Forrest

30

$509,500

$790,000

2.1%

South Guildford

59

$515,000

$1,150,000

2.0%

Kalamunda

87

$580,000

$1,550,000

1.8%

Lesmurdie

64

$560,000

$1,050,000

0.9 %

N.B. filtered for 30 or more sales per suburb.

REIWA.COM MARKET UPDATE

| December 2017 quarter

QRTLY Change in QRTLY Median


PERTH NORTH EAST SUB-REGION MULTI-RESIDENTIAL

MEDIAN PRICE

$292k QRTLY CHANGE

-0.7%

The multi-residential market in the North East sub-region represents only 4.9 per cent of total sales. There were 18 preliminary sales for the December 2017 quarter, compared to 35 recorded during the June 2017 quarter and 34 for the same time last year. Although preliminary sales are down by 48.6 per cent over the quarter, reiwa.com data suggests multi-residential sales will lift to 30 transactions once all sales have settled. This would represent a smaller decrease of 14.3 per cent in quarterly sales. Unit sales are below the 10 year average of 48. However, the State Government’s commitment to deliver Metronet presents a great opportunity for densification living in and around the Forrestfield and Hills area. Multi-residential sales occurring in the North East sub-region are mostly priced below $500,000, with 66.7 per cent of sales occurring within the $150-$360,000 price range and 22.2 per cent, between the $360-$500,000 price range.

SALES VOLUME

30

QRTLY CHANGE

-14.3%

NORTH EAST SUB-REGION MULTI-RESIDENTIAL MARKET

LISTINGS FOR SALE

90

$400,000

80

$350,000

70

$300,000

113

AVE SELLING DAYS

139

60

$250,000

50

$200,000

40

% SELLERS DISCOUNTING

$150,000

30

MULTI-RES SALES

10 Year Average Sales

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

$50,000

0

Q3 2013

10 Q2 2013

%

$100,000

Q1 2013

AVE DISCOUNT OFFERED

20

Q4 2012

66.7% -8.4

Source: Landgate/REIWA ©

$0

MULTI-RES MEDIAN

LAND There were 116 vacant land sales recorded for the latest December 2017 quarter, a significant drop compared to what settled for the previous September 2017 quarter. reiwa.com data suggests sales will remain close to current levels by the time the March 2018 quarter reporting comes around. This would represent a 52.9 per cent decline in quarterly transactional activity. MEDIAN PRICE

$240

k

QRTLY CHANGE

1.1%

SALES VOLUME

113 -52.9% QRTLY CHANGE

LISTINGS FOR SALE

422 100

This sub-region tends to offer more lots under 499 square metres, with 81 sales occurring in this land area range. Price per square metre is considerably more affordable than any other sub-region in the Perth Metro region. 320 square metres to 499 square metres attracts a price of $616 per square metre, and lots from 600 square metres to 999 square metres cost $456 per square metre. NORTH EAST SUB-REGION VACANT LAND MARKET

Source: Landgate/REIWA ©

900

AVE SELLING DAYS

$270,000

800

$260,000

700 600

200

$220,000

LAND SALES

10 Year Average Sales

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

0

Q4 2013

100 Q3 2013

%

$230,000

300

Q2 2013

AVE DISCOUNT OFFERED

$240,000

400

Q1 2013

56.6%

$250,000

500

Q4 2012

% SELLERS DISCOUNTING

-4.8

Prices in the sub-region’s land market are slowly rising, to record a preliminary figure of $292,000 during the December 2017 quarter, up 0.7 per cent. However, prices are still considerably lower than the 10-year average of $338,500, indicating there is still a long way to go for land prices in this region.

$200,000

LAND MEDIAN

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

19


PERTH NORTH EAST SUB-REGION SUBURB SPOTLIGHT

Explore Lesmurdie Sales activity in Lesmurdie increased during the December 2017 quarter. A total of 19 house transactions have settled so far for the quarter at a median house price of $590,000. reiwa.com data suggests that once further transactions settle, total house sales will increase to 27 with a median price of approximately $620,000. This would represent an appreciation of 22.2 per cent in the median house price over the latest quarter and a 92.9 per cent rise in sales activity. House listings for sale in the area have increased by 5.4 per cent during the December 2017 quarter and are 30 per cent higher compared to the December 2016 quarter. The average time to sell a house decreased by 13 days to 76 days. REIWA members reported 15 total properties (houses and units) leased over the quarter, a decrease of 16.7 per cent compared to the September 2017 quarter. Lesmurdie’s overall median weekly rent came in at $400 per week for the quarter which is $20 higher than the September 2017 quarter. LESMURDIE HOUSING MARKET

Source: Landgate/REIWA ©

$700,000

45 40

$600,000

35

$500,000

30 25

$400,000

20

$300,000

15

$200,000

10 $100,000

HOUSE SALES

Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q1 2015

Q2 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q1 2012

Q2 2013

0

Q4 2012

5

$0

10 YEAR AVERAGE SALES

HOUSE MEDIAN

LESMURDIE RENTAL MARKET

Source: Landgate/REIWA ©

16

$600

14

$500

12 $400

10

$300

8 6

$200

4 $100

DWELLING LISTINGS FOR RENT

Q4 2017

Q3 2017

Q2 2017

Q1 2016

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Houses

Quarterly Change

Annual Change

Median Price

$620,000

22.2%

14.8%

Sales Volume

27

92.9%

22.7%

Listings for Sale

39

5.4%

30.0%

Average Selling Days

76

-13

+11

Average Discount

-5.2%

0.2 % pts

1.5% pts

Median Weekly Rent

$400

$20

-$55

Properties Leased

14

-22.2%

-22.2%

Listings for Rent

8

-27.3%

14.3%

For more information about your suburb, visit |

OVERALL MEDIAN RENT

Lesmurdie Q4 2017

N.B. above figures are based on latest reiwa.com data

20

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

2

REIWA.COM MARKET UPDATE

| December 2017 quarter

$0


PERTH SOUTH EAST SUB-REGION OVERVIEW The population of Perth’s South East sub-region is growing at 1.0 per cent per annum with an estimated 506,665 persons residing in the area as at 30 June 2016. The region represents a low densified area with approximately 250 people occupying a square kilometre. The South East sub-region accounted for 10.2 per cent of all dwelling sales across the Perth Metro region December 2017 quarter. Landgate reports dwelling sales in the South East sub-region are 16.2 per cent lower than during the September 2017 quarter. reiwa.com data suggests December 2017 quarter dwelling sales will increase to 669 once all sales have settled, which would represent a 5.4 per cent increase on the September 2017 quarter. Source: Landgate/REIWA ©

Sales

Lower Quartile

Upper Quartile

House

520

$310,000

$402,000

$510,000

-3.1%

Multi-Res

11

$230,500

$261,000

$306,000

-3.0%

Land

75

$217,000

$265,000

$348,000

12.8%

Median

QRTLY change in QRTLY Median

HOUSES Preliminary house sales in the South East sub-region decreased by 18.2 per cent compared to the September 2017 quarter figure of 594. reiwa.com data is indicating house sales in the South East sub-region will increase to 628 once all transactions settle, which would represent a 5.7 per cent improvement on the September 2017 quarter. MEDIAN PRICE

$410k

Sales activity in the South East sub-region remains subdued, with sales volumes in the December 2017 quarter sitting 26.1 per cent below the 10-year average of 850.

QRTLY CHANGE

Sale by price range analysis shows 53.6 per cent of house sales occur under $500,000 and the trade-up market ($500,000 to $725,000) represents 33.8 per cent. This demonstrates first home buyers are active in the South East sub-region.

0.9%

SALES VOLUME

628

QRTLY CHANGE

5.7

%

LISTINGS FOR SALE

1,227

AVE SELLING DAYS

71

$470,000

1,400

$460,000

1,200

$450,000

1,000

$440,000

800

$430,000

600

$410,000

400

$400,000

$420,000

$390,000

200

HOUSE SALES

AVE DISCOUNT OFFERED

10 Year Average Sales

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q1 2015

Q2 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q1 2013

Q2 2013

63.4%

$380,000 Q4 2012

% SELLERS DISCOUNTING

-6.6

Source: Landgate/REIWA ©

SOUTH EAST SUB-REGION HOUSING MARKET

$370,000

HOUSE MEDIAN

%

N.B. above figures are based on latest reiwa.com data

TOP 5 SUBURBS BY QUARTERLY CHANGE IN PRICE Year to December 2017

Source: Landgate/REIWA ©

House Sales

Median Price

Highest Price

Kenwick

65

$349,500

$700,000

2.8%

Roleystone

91

$535,000

$1,130,000

2.7%

Southern River

107

$551,000

$1,250,000

1.5%

Byford

163

$405,000

$906,000

1.3%

Kelmscott

131

$330,000

$830,000

0.8%

QRTLY Change in Annual Median

N.B. filtered for 30 or more sales per suburb.

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

21


PERTH SOUTH EAST SUB-REGION MULTI-RESIDENTIAL The multi-residential market in the South East sub-region is the smallest of the five sub-regions in the Perth Metro area, representing only 2.1 per cent of activity in the December 2017 quarter. The sub-region presents a great opportunity for further densification.

MEDIAN PRICE

$310k QRTLY CHANGE

16.1 % SALES VOLUME

23

QRTLY CHANGE

-4.2%

LISTINGS FOR SALE

97

There were 11 preliminary unit sales in the South East sub-region for the December 2017 quarter, compared to 24 recorded in the September 2017 quarter and 29 for the December 2016 quarter. Once all sales have settled, reiwa.com data indicates sales volumes will lift to 23 sales. This would represent a 4.1 per cent decrease in activity levels on a quarterly basis and 20.7 per cent annually. As was similarly observed in the housing market in this sub-region, unit sales are well below the 10 year average of 41 and based on latest reiwa.com figures, unit sales activity in the December quarter are 43.9 per cent lower than the 10 year average. First home buyers are active in the South East sub-region, with 90.9 per cent of multi-residential sales in the area occuring in the $150,000-360,000 price range, with the remaining sales occurring between $360,000-500,000. Source: Landgate/REIWA ©

SOUTH EAST SUB-REGION MULTI-RESIDENTIAL MARKET 70

$400,000

76

60

$350,000

% SELLERS DISCOUNTING

40

$150,000

20

$100,000

10 Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

200

$210,000

LAND SALES

REIWA.COM MARKET UPDATE

| December 2017 quarter

10 Year Average Sales

LAND MEDIAN

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

0

Q1 2016

100

-10.6 %

|

Q3 2014

$220,000

300

AVE DISCOUNT OFFERED

22

Q2 2014

400

Q4 2015

43.4%

$230,000

500

Q3 2015

% SELLERS DISCOUNTING

$240,000

600

Q2 2015

96

700

Q1 2015

AVE SELLING DAYS

$250,000

800

Q4 2014

554

$260,000

900

Q3 2014

LISTINGS FOR SALE

1,000

Q2 2014

-43.7%

Source: Landgate/REIWA ©

SOUTH EAST SUB-REGION VACANT LAND MARKET

Q4 2014

QRTLY CHANGE

Q4 2013

143

Q3 2013

SALES VOLUME

Lots under 320 square metres attract a price of $797 per square metre in the South East subregion, whilst the more common lots (between 320 square metres and 499 square metres) cost $710 per square metre.

Q2 2013

8.7%

MULTI-RES MEDIAN

The 10-year average price for land in the sub-region is $231,446, which is 14.5 per cent below the preliminary December 2017 quarter median land price of $265,000.

Q1 2013

QRTLY CHANGE

10 Year Average Sales

$0

Land sales represent 13.6 per cent of the total transactions in the sub-region, with preliminary Landgate data showing there were 72 sales during the December 2017 quarter, which is 71.7 per cent lower than the September 2017 quarter. Land sales are expected to lift to around 143 as further transactions settle. This would result in a 43.7 per cent decline in activity once further settlements are accounted for.

Q4 2012

$250k

Q1 2014

MULTI-RES SALES

LAND

MEDIAN PRICE

Q4 2013

$50,000

0

Q3 2013

-9.6 %

30

Q1 2013

AVE DISCOUNT OFFERED

$250,000 $200,000

Q2 2013

47.8 %

$300,000

50

Q4 2012

AVE SELLING DAYS

$200,000


PERTH SOUTH EAST SUB-REGION SUBURB SPOTLIGHT

Explore Byford Sales activity in Byford increased during the December 2017 quarter. A total of 32 house transactions have settled so far for the quarter at a median house price of $425,000. reiwa.com data suggests once further transactions settle, total house sales will increase to 38 with a median price of approximately $417,500. This would represent an increase of five per cent to Byford’s median house price in the December 2017 quarter and an 18.8 per cent rise in sales activity. House listings for sale in the area increased by 19.6 per cent during the December 2017 quarter and are 31 per cent higher than the same time last year. The average time to sell a house increased by five days to 86 days. REIWA members reported 90 total properties (houses and units) leased over the quarter, an increase of 13.9 per cent compared to the September 2017 quarter. The overall median weekly rent in Byford is $340 per week for the December 2017 quarter which is $5 higher than the September 2017 quarter. Source: Landgate/REIWA ©

BYFORD HOUSING MARKET 90

$500,000

80

$450,000 $400,000

70

$350,000

60

$300,000

50

$250,000

40

$200,000

30

$150,000

HOUSE MEDIAN

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q1 2015

HOUSE SALES

Q2 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q1 2013

$50,000 Q2 2013

$100,000

10 Q4 2012

20

10 YEAR AVERAGE SALES

Source: Landgate/REIWA ©

BYFORD RENTAL MARKET

$500

80

$450

70

$400

60

$350

50

$300

40

$250 $200

30

$150

20

$100

10

DWELLING LISTINGS FOR RENT

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

$50

OVERALL MEDIAN RENT

Byford Q4 2017

Houses

Quarterly Change

Annual Change

Median Price

$417,500

5.0%

1.3%

Sales Volume

38

18.8%

-2.6%

Listings for Sale

110

19.6%

31.0%

Average Selling Days

86

+5

-2

Average Discount

-5.6%

2.1 % pts

-0.2 % pts

Median Weekly Rent

$340

$5

-$10

Properties Leased

90

13.9%

11.1%

Listings for Rent

34

-39.3%

-33.3%

N.B. above figures are based on latest reiwa.com data

For more information about your suburb, visit REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

23


PERTH SOUTH WEST SUB-REGION OVERVIEW The population of Perth’s South West sub-region is growing at 1.2 per cent per annum with an estimated 419,626 persons residing in the area as at 30 June 2016. The region represents a medium densified area with approximately 676 people occupying a square kilometre. The South West sub-region recorded 13.8 per cent of total dwelling sales in the Perth Metro region for the December 2017 quarter. Landgate reports preliminary dwelling sales in the South West sub-region are 13.5 per cent lower than those experienced during the previous September 2017 quarter. reiwa.com data suggests dwelling sales during the December 2017 quarter will increase to 882 once all transactions settle, which would represent a six per cent increase in activity levels. Source: Landgate/REIWA ©

Sales

Lower Quartile

Median

Upper Quartile

QRTLY change in QRTLY Median

House

658

$335,000

$415,000

$510,000

-3.7%

Multi-Res

98

$220,000

$312,500

$410,000

-10.7%

Land

119

$209,000

$264,000

$367,500

11.9%

HOUSES Preliminary house sales in the South West sub-region declined by 13.1 per cent compared to the September 2017 quarter figure of 727. reiwa.com data indicates house sales in the South West sub-region will increase to 796 once all transactions settle, representing a 9.5 per cent increase in activity levels. MEDIAN PRICE

$421k QRTLY CHANGE

1.4 %

Activity in the South West sub-region remains dampened, with the 10-year average for house sales sitting at 1,028 which is, 22.6 per cent higher than the reiwa.com December 2017 quarter figures. Sale by price range analysis shows 73.6 per cent of house sales occur under $500,000 and the trade-up market ($500,000 to $725,000) represents 20.6 per cent of total sales. The South West sub-region has a healthy level of activity in the traditional first home buyer territory of under the $500,000 mark for houses.

SALES VOLUME

796

QRTLY CHANGE

Source: Landgate/REIWA ©

SOUTH WEST SUB-REGION HOUSING MARKET

9.5

1,600

$480,000

LISTINGS FOR SALE

1,400

$470,000

%

1,636

AVE SELLING DAYS -

81

$440,000

800

$430,000

600

$420,000

N.B. above figures are based on latest reiwa.com data

|

HOUSE SALES

10 Year Average Sales

Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q1 2014

Q2 2014

-7.4%

Q4 2013

$380,000 Q3 2013

$390,000

0 Q2 2013

%

$400,000

200

AVE DISCOUNT OFFERED

24

$410,000

400

Q1 2013

60.3

$450,000

1,000

Q4 2012

% SELLERS DISCOUNTING

$460,000

1,200

HOUSE MEDIAN

TOP 5 SUBURBS BY QUARTERLY CHANGE IN PRICE Year to December 2017

Source: Landgate/REIWA ©

House Sales

Median Price

Highest Price

Yangebup

90

$436,500

$870,000

2.1%

Leda

36

$306,000

$405,000

2.0%

Bibra Lake

71

$543,500

$1,080,000

1.6%

Aubin Grove

76

$551,500

$800,000

1.2%

Coolbellup

61

$445,000

$610,000

0.2%

N.B. filtered for 30 or more sales per suburb.

REIWA.COM MARKET UPDATE

| December 2017 quarter

QRTLY Change in Annual Median


PERTH SOUTH WEST SUB-REGION MULTI-RESIDENTIAL Multi-residential sales in the South West sub-region accounted for 8.2 per cent of total sales in the December 2017 quarter.

MEDIAN PRICE

$277.5k QRTLY CHANGE

-18.1%

There were 88 preliminary sales for the December 2017 quarter, compared to 105 recorded during the September 2017 quarter and 100 for the same time last year. This represents declines of 16.2 per cent on a quarterly basis and 12 per cent annually. Unit sales are currently 35.3 per cent below the 10 year average of 133. 94.3 per cent of multi-residential sales in the South West sub-region occur below $500,000, with the remaining occurring between $600,000-725,000.

SALES VOLUME

86

Source: Landgate/REIWA ©

SOUTH WEST SUB-REGION MULTI-RESIDENTIAL MARKET

$450,000

250

QRTLY CHANGE

$400,000

-18.1%

200

LISTINGS FOR SALE

150

$200,000

100

$150,000 $100,000

50

$50,000

MULTI-RES SALES

10 YEAR AVERAGE SALES

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q1 2016

Q2 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q1 2014

Q4 2012

58.1%

Q2 2014

$0

% SELLERS DISCOUNTING

Q4 2013

0 Q3 2013

99

$250,000

Q2 2013

AVE SELLING DAYS

$300,000

Q1 2013

347

$350,000

MULTI-RES MEDIAN

AVE DISCOUNT OFFERED

-11.3%

LAND Land sales represent 16.1 per cent of total transactions in the sub-region. The preliminary results indicate there were 111 land sales during the December 2017 quarter, which is 60.2 per cent lower than the September 2017 quarter. Once all transactions settle, land sales are expected to lift to 169, which would represent a 39.4 per cent decline in activity.

-13.6 %

LAND SALES

10 YEAR AVERAGE SALES

Q4 2017

$0 Q3 2017

0

Q2 2017

$50,000

Q1 2017

200

Q4 2016

$100,000

Q3 2016

$150,000

Q2 2016

AVE DISCOUNT OFFERED

600 400

Q1 2016

44.1%

$200,000

Q4 2015

% SELLERS DISCOUNTING

800

Q3 2015

94

$250,000

Q2 2015

AVE SELLING DAYS

1,000

Q1 2015

781

$300,000

Q4 2014

LISTINGS FOR SALE

1,200

Q3 2014

-39.4%

Source: Landgate/REIWA ©

SOUTH WEST SUB-REGION VACANT LAND MARKET

Q2 2014

QRTLY CHANGE

Q1 2014

169

Q4 2013

SALES VOLUME

Lots under 320 square metres attract a price of $797 per square metre in the South West subregion, whilst the more common lots (between 320 square metres and 499 square metres) cost $674 per square metre.

Q3 2013

-10.4%

Q2 2013

QRTLY CHANGE

The latest reiwa.com median land price for the December 2017 quarter is $215,000, which is close to the 10-year average for the South West sub-region of $223,902. Prices in the South West sub-region’s land market have hovered between $220,000 and $240,000 throughout 2017.

Q1 2013

$215k

Q4 2012

MEDIAN PRICE

LAND MEDIAN

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

25


PERTH SOUTH WEST SUB-REGION SUBURB SPOTLIGHT

Explore Parmelia Sales activity in Parmelia increased during the December 2017 quarter. A total of 16 house transactions have settled so far for the quarter at a median house price of $270,000. reiwa.com data suggests that once further transactions settle, total house sales will increase to 18 with a median price of approximately $269,500. This would represent an increase of 5.7 per cent in Parmelia’s median house price over the latest quarter and a 20 per cent increase in sales activity. House listings for sale in the area have decreased by 35.9 per cent compared to the September 2017 quarter and are 26.5 per cent lower than the same time last year. The average time to sell a house decreased by 41 days to 78 days in the December 2017 quarter. REIWA members reported there were 30 properties (houses and units) leased in the December 2017 quarter, an increase of 7.1 per cent on the September 2017 quarter. The overall median weekly rent in Parmelia for the December 2017 quarter is $265 per week, which is $5 higher than the September 2017 quarter. Source: Landgate/REIWA ©

PARMELIA HOUSING MARKET

$350,000

50 45

$300,000

40 35

$250,000

30

$200,000

25 20

$150,000

15

$100,000

10

$50,000

HOUSE SALES

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q1 2016

Q2 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q1 2014

Q2 2014

Q4 2013

Q3 2013

Q2 2013

Q1 2013

Q4 2012

5

10 YEAR AVERAGE SALES

HOUSE MEDIAN

Source: Landgate/REIWA ©

PARMELIA RENTAL MARKET

$400

40

DWELLING LISTINGS FOR RENT

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Houses

Quarterly Change

Annual Change

Median Price

$269,500

5.7%

-11.6%

Sales Volume

18

20.0%

38.5%

Listings for Sale

25

-35.9%

-26.5%

Average Selling Days

78

-41

+25

Average Discount

-13.2%

-5.1 % pts

-6.3 % pts

Median Weekly Rent

$270

$10

-$10

Properties Leased

27

8.0%

-30.8%

Listings for Rent

23

53.3%

-30.3%

For more information about your suburb, visit |

OVERALL MEDIAN RENT

Parmelia Q4 2017

N.B. above figures are based on latest reiwa.com data

26

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

$50 Q3 2014

$100

5 Q2 2014

$150

10

Q1 2014

$200

15

Q4 2013

$250

20

Q3 2013

25

Q2 2013

$300

Q1 2013

$350

30

Q4 2012

35

REIWA.COM MARKET UPDATE

| December 2017 quarter


REGIONAL WA EXPLORE THE KIMBERLEY

TOTAL SALES*

41

MEDIAN HOUSE PRICE

$410k

Sales activity in the Kimberley region declined during the December 2017 quarter. A total of 26 house transactions have settled so far at a median house price of $420,000. reiwa.com data suggests once further transactions settle, total house sales will increase to 41 with a median price of approximately $410,000. This would represent an increase of 3.1 per cent in median house prices over the latest quarter, despite a 22.6 per cent fall in sales activity. House listings for sale in the area decreased by 24.3 per cent in the December 2017 quarter and are 11.4 per cent lower than the December 2016 quarter. The average time to sell a house increased by 28 days to 103 days. REIWA members reported 175 properties (houses and units) leased over the quarter, five per cent less than the September 2017 quarter. The overall median weekly rent in the Kimberley region came in at $440 per week for the quarter which is $10 lower than the September 2017 quarter.

LISTINGS FOR SALE*

109

AVE SELLING DAYS+

103

EXPLORE THE PILBARA

TOTAL SALES*

190

MEDIAN HOUSE PRICE

$272.5k

Sales activity in the Pilbara region increased during the December 2017 quarter. A total of 124 house transactions have settled so far at a median house price of $270,000. reiwa.com data suggests once further transactions settle, total house sales will lift to 190 with a median price of approximately $272,500. This would represent an increase of 5.2 per cent to the Pilbara region’s median house price over the latest quarter and a 31 per cent rise in sales activity. House listings for sale in the area have decreased by 14.4 per cent during the December 2017 quarter and are 34.1 per cent lower than the December 2016 quarter. The average time to sell a house in the Pilbara decreased by 10 days to 55 days. REIWA members reported 455 properties (houses and units) leased over the quarter, a decrease of nine per cent over the quarter. The overall median weekly rent in the Pilbara is $400 per week for the December 2017 quarter, which is $25 higher than the September 2017 quarter.

LISTINGS FOR SALE*

178

AVE SELLING DAYS+

55

EXPLORE THE GASCOYNE

TOTAL SALES*

17

MEDIAN HOUSE PRICE

$243.7k

Sales activity in the Gascoyne region increased during the December 2017 quarter. A total of 14 house transactions have settled so far for the quarter at a median house price of $223,750. reiwa.com data suggests once further transactions settle, total house sales will increase to 17 with a median price of approximately $243,750. This would represent a decline of 39.1 per cent to the Gascoyne region’s median house price in the December 2017 quarter, despite a 13.3 per cent rise in sales activity. House listings for sale in the area decreased by 23.4 per cent in the December 2017 quarter, but are 80.9 per cent higher than the December 2016 quarter. The average time to sell a house in the Gascoyne region decreased by 20 days to 129 days over the quarter. REIWA members reported there were 54 properties (houses and units) leased in the December quarter, an increase of 32 per cent compared to the September 2017 quarter. The overall median weekly rent in the Gascoyne is $373 per week for the quarter, which is $13 higher than the September 2017 quarter.

LISTINGS FOR SALE*

85

AVE SELLING DAYS+

129

* Houses, units and land. + Houses only.

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

27


REGIONAL WA EXPLORE THE MID WEST

TOTAL SALES*

167 $301k 500

MEDIAN HOUSE PRICE

Sales activity in the Mid West region increased during the December 2017 quarter. A total of 96 house transactions have settled so far at a median house price of $292,500. reiwa.com data suggests once further transactions settle, total house sales will increase to 167 with a median price of approximately $301,000. This would represent an increase of 12.5 per cent to the Mid West region’s median house price in the December 2017 quarter and a 46.5 per cent rise in sales activity. House listings for sale in the area increased by 2.5 per cent in the December 2017 quarter but are 10.7 per cent lower than the December 2016 quarter. The average time to sell a house increased by one day to 104 days. REIWA members reported there were 314 properties (houses and units) leased during the December quarter, which is an increase of 11 per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $263 per week for the quarter which is $8 lower than the September 2017 quarter.

LISTINGS FOR SALE*

AVE SELLING DAYS+

104

EXPLORE THE WHEATBELT

TOTAL SALES*

114 $267.5k 678 99 MEDIAN HOUSE PRICE

Sales activity in the Wheatbelt region increased during the December 2017 quarter. A total of 98 house transactions have settled so far at a median house price of $235,000. reiwa.com data suggests once further transactions settle, total house sales will lift to 114 with a median price of approximately $267,500. This would represent an increase of 40.8 per cent to the Wheatbelt region’s median house in the December 2017 quarter and a 6.5 per cent rise in sales activity. House listings for sale in the area decreased by 1.6 per cent during the December 2017 quarter and are 16.8 per cent lower than the December 2016 quarter. The average time to sell a house in the Wheatbelt decreased by 19 days to 99 days. REIWA members reported there were 126 properties (houses and units) leased over the quarter, an increase of 15 per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $280 per week for the quarter which is $15 lower than the September 2017 quarter.

LISTINGS FOR SALE*

AVE SELLING DAYS+

EXPLORE THE PEEL

TOTAL SALES*

362 $393.5k 1,128 91 MEDIAN HOUSE PRICE

Sales activity in the Peel region increased during the December 2017 quarter. A total of 262 house transactions have settled so far at a median house price of $375,250. reiwa.com data suggests once further transactions settle, total house sales will lift to 362 with a median price of approximately $393,500. This would represent an increase of 6.9 per cent in median house prices in the December 2017 quarter and a 24.4 per cent rise in sales activity. House listings for sale in the area increased by 8.5 per cent during the December 2017 quarter but are 3.5 per cent lower than the December 2016 quarter. The average time to sell a house in the Peel region decreased by 15 days to 91 days. REIWA members reported there were 736 properties (houses and units) leased in the December 2017 quarter, a decrease of six per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $300 per week for the quarter which is unchanged from the September 2017 quarter.

LISTINGS FOR SALE*

AVE SELLING DAYS+

* Houses, units and land. + Houses only.

28

|

REIWA.COM MARKET UPDATE

| December 2017 quarter


REGIONAL WA EXPLORE THE SOUTH WEST

TOTAL SALES*

480

MEDIAN HOUSE PRICE

$420k

Sales activity in the South West region increased during the December 2017 quarter. A total of 370 house transactions have settled so far for the quarter at a median house price of $400,000. reiwa.com data suggests once further transactions settle, total house sales will lift to 480 with a median price of approximately $420,000. This would represent an increase of 7.7 per cent to the South West’s December 2017 quarter median house price and a 12.1 per cent rise in sales activity. House listings for sale in the area increased by 13.1 per cent during the December 2017 quarter and are 2.3 per cent higher than the same time last year. The average time to sell a house decreased by eight days to 93 days. REIWA members reported there were 731 total properties (houses and units) leased over the quarter, a decrease of nine per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $350 per week for the quarter which is $10 higher than the September 2017 quarter.

LISTINGS FOR SALE*

1,881

AVE SELLING DAYS+

93

EXPLORE THE GREAT SOUTHERN

TOTAL SALES*

156

MEDIAN HOUSE PRICE

$390k

Sales activity in the Great Southern region increased during the December 2017 quarter. A total of 107 house transactions have settled so far at a median house price of $375,000. reiwa.com data suggests once further transactions settle, total house sales will lift to 156 with a median price of approximately $390,000. This would represent an increase of 18.2 per cent to the Great Southern region’s median house price and a 19.1 per cent rise in sales activity. House listings for sale in the area increased by 12.8 per cent during the December 2017 quarter and are 15.3 per cent higher than the same time last year. The average time to sell a house in the Great Southern region decreased by seven days to 89 days. REIWA members reported there were 235 properties (houses and units) leased in the December 2017 quarter, an increase of 14 per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $340 per week for the quarter which is unchanged from the September 2017 quarter.

LISTINGS FOR SALE*

557

AVE SELLING DAYS+

89

EXPLORE THE GOLDFIELDS-ESPERANCE

TOTAL SALES*

118

MEDIAN HOUSE PRICE

$299.5k LISTINGS FOR SALE*

Sales activity in the Goldfields-Esperance region increased during the December 2017 quarter. A total of 92 house transactions have settled so far at a median house price of $300,000. reiwa.com data suggests once further transactions settle, total house sales will lift to 118 with a median price of approximately $299,500. This would represent an increase of seven per cent to the GoldfieldsEsperance’s median house price in the December 2017 quarter and a 6.3 per cent rise in sales activity. House listings for sale in the area decreased by 13.8 per cent during the December 2017 quarter but are 2.8 per cent higher than the same time last year. The average time to sell a house decreased by 24 days to 108 days. REIWA members reported there were 279 properties (houses and units) leased in the December 2017 quarter, a decrease of 13 per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $310 per week for the quarter which is $10 higher than the September 2017 quarter.

555

AVE SELLING DAYS+

108

* Houses, units and land. + Houses only.

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

29


REGIONAL WA

Focus on Carnarvon

169

4,423

280

k

$

$

Median House Price

Median House Rent

2.4

$

$

Median weekly household income

Median monthly mortgage repayments

Population

1,242 1,500

Average people per household EMPLOYMENT BY OCCUPATION

Clerical/Admin Technical Trades Labourers Managers Community Service Other POPULATION BY AGE GROUP Source: Landgate/REIWA ©

9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0%

POPULATION BY AGE, CARNARVON

85+ years

80-84 years

75-79 years

70-74 years

65-69 years

60-64 years

55-59 years

50-54 years

45-49 years

40-44 years

35-39 years

30-34 years

25-29 years

20-24 years

15-19 years

10-14 years

5-9 years

0-4 years

1.0% 0.0%

POPULATION BY AGE, WESTERN AUSTRALIA

N.B. all property related statistcs are derived from reiwa.com and Landgate datasets. All other information is sourced from the 2016 Census of Population and Housing which provide a comprehensive picture of Australia’s people, how they live and where they reside.

30

|

REIWA.COM MARKET UPDATE

| December 2017 quarter


REGIONAL WA

42% 4.6% 1.5% Separate house dwellings

Flats and apartments

Duplexes and townhouses

RESIDENTIAL PROPERTY MARKET Sales activity in the Carnarvon market increased during the December 2017 quarter. A total of 10 house transactions have settled so far at a median house price of $169,000. This represents a decline of 50.3 per cent to Carnarvon’s median house price in the December 2017 quarter, despite a 100 per cent rise in sales activity. House listings for sale in the area decreased by 30.9 per cent during the December 2017 quarter, but are significantly higher than the December 2016 quarter. The average time to sell a house in Carnarvon increased by 23 days to 163 days. REIWA members reported there were 25 properties (houses and units) leased over the quarter, an increase of four per cent compared to the September 2017 quarter. The overall median weekly rent in the area came in at $250 per week for the quarter which is $45 lower than the September 2017 quarter. Source: Landgate/REIWA ©

CARNARVON HOUSING MARKET 1,600

$480,000

1,400

$470,000 $460,000

1,200

$450,000

1,000

$440,000

800

$430,000

600

$420,000 $410,000

400

$400,000

HOUSE SALES

10 YEAR AVERAGE SALES

Q4 2017

Q3 2017

Q1 2017

Q2 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Q2 2013

$380,000 Q1 2013

$390,000

0 Q4 2012

200

HOUSE MEDIAN

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

31


PERTH RENTAL REPORT OVERVIEW OVERALL GROSS YIELD

3.70

%

QRTLY VACANCY RATE

5.5%

OVERALL MEDIAN RENT

$350

QRTLY LEASING ACTIVITY

13,576

(-1.5% QRTLY CHANGE) LISTINGS FOR RENT

8,912

(0.0% QRTLY CHANGE)

Overall median weekly rents across the Perth Metro region have experienced declining trends since mid-2013. More recently, the market has begun to stabilise with the median weekly rent remaining unchanged at $350 per week for three consecutive quarters. Population trends have a significant impact on the rental market, as it is often the first port of call for overseas and interstate migrants looking for a place to call home. After experiencing slowing growth rates since 2013, latest data indicates population growth may have reached its floor, providing much needed support to the local rental market. Despite overall median rents coming in $10 per week lower in comparison to the same time in 2016, rents have remained steady over the last two quarters. The Perth Metro region’s overall median rent comes in at $350 per week for the December 2017 quarter. Listings for rent have trended lower since the June 2016 quarter, which indicates a welcome readjustment from the oversupply of rental properties observed previously. As at December 2017, there were 8,912 properties listed for rent on reiwa.com, down 8.4 per cent compared to the September 2017 quarter. REIWA members reported leasing activity was more subdued during the December 2017 quarter. A total of 13,576 dwellings were leased over the quarter, down 1.5 per cent from the September 2017 quarter which had seen activity expand by almost five per cent. In terms of yields, average house yields are currently at 3.5 per cent whilst unit yields are higher, at 4.1 per cent. In comparison to the deposit savings rate, which is currently at 1.5 per cent, property continues to offer a more attractive return on investment. OVERALL RENTS & VACANCY RATE

Source: reiwa.com/Member Surveys

$470

8.0%

$450

7.0% 6.0%

$430

5.0%

5.5%

$410

4.0%

$390

3.0%

$370

$350

2.0%

$350

Overall Median Rents ($)

0.0%

Q4 2017

Q2 2017

Q4 2016

Q2 2016

Q4 2015

Q2 2015

Q4 2014

Q2 2014

Q4 2013

Q2 2013

1.0% Q4 2012

$330

Vacancy Rate (%)

RENTAL LISTINGS AND AVERAGE LEASING DAYS

Source: reiwa.com

Rental Listings (LHS)

0

Q4 2017

0

Q2 2017

10 Q4 2016

20

2,000 Q2 2016

4,000

Q4 2015

30

Q2 2015

40

6,000

Q4 2014

8,000

Q2 2014

50

Q4 2013

10,000

Q2 2013

60

Q4 2012

12,000

Average Leasing Days (RHS)

RENTAL YIELDS VERSUS DEPOSIT SAVINGS RATES

Source: RBA Cat No F4/reiwa.com

5.0% 4.5% 4.0% 3.5%

3.7%

3.0% 2.5% 2.0% 1.5% 1.0% 0.5%

Overall Rental Yield

32

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REIWA.COM MARKET UPDATE

| December 2017 quarter

Online Standard Deposit Savings Rate

Q4 2017

Q2 2017

Q4 2016

Q2 2016

Q4 2015

Q2 2015

Q4 2014

Q2 2014

Q4 2013

Q2 2013

Q4 2012

0.0%

1.5%


PERTH RENTAL REPORT HOUSE RENTS Median house rents have remained unchanged at $350 per week during the December 2017 quarter. In comparison to the same time in 2016, house rents are $30 per week cheaper. The more attractive house rents have provided support to house leasing activity which remained steady over the quarter. A total of 8,533 houses were leased by REIWA members during the December 2017 quarter. MEDIAN HOUSE RENT

$350

TOTAL LISTINGS FOR RENT *

5,349 QRTLY LEASING ACTIVITY

On average, it takes 48 days to lease a house in the Perth Metro region, down by five days from the September 2017 quarter. As at December 2017, there were a total of 8,912 houses listed for rent, representing approximately 60 per cent of all rental listings. Source: reiwa.com

HOUSE RENTS - DECEMBER 2017 QUARTER

8,533 AVE DAYS TO LEASE *

48 days

1-2 Beds

3 Beds

4 Beds

5+ Beds

Total

Upper Quartile

$350

$385

$475

$700

$430

Median Rent

$280

$330

$400

$515

$350

Lower Quartile

$250

$290

$350

$430

$300

MULTI-RESIDENTIAL RENTS Rents in the unit market declined marginally during the December 2017 quarter by $3 to record $320 per week. In comparison to the December 2016 quarter, unit rents are down by $20 per week.

MEDIAN UNIT RENT

$320

TOTAL LISTINGS FOR RENT+

3,563 QRTLY LEASING ACTIVITY

5,043 51 days

Leasing activity for units lost momentum over the quarter, with activity down 3.6 per cent from the September 2017 quarter. In comparison to the December 2016 quarter, activity is lower by 2.9 per cent. On average, it takes 51 days to lease a unit in the Perth Metro region, down by four days from the September 2017 quarter. Unit listings have decreased during the December 2017 quarter, down by seven per cent compared to the September 2017 quarter to record 3,563 listings. In comparison to the December 2016 quarter, listings are down by 10.7 per cent. Source: reiwa.com

MULTI-RESIDENTIAL RENTS - DECEMBER 2017 QUARTER

AVE DAYS TO LEASE+

1 Beds

2 Beds

4 Beds

5+ Beds

Total

Upper Quartile

$330

$400

$550

$538

$395

Median Rent

$270

$308

$415

$453

$320

Lower Quartile

$215

$250

$350

$270

$260

* Houses only. + Units only.

REIWA.COM MARKET UPDATE

|

December 2017 quarter

|

33


PERTH RENTAL REPORT

NORTH WEST

Source: reiwa.com (QRTLY/Annual Change)

LEASED

MEDIAN RENT

LISTINGS

(+0.9%/-0.6%)

(+0.0%/-5.4%)

(-19.2%/-22.4%)

1,927

$350

1,066 NORTH EAST LEASED

MEDIAN RENT

LISTINGS

(-1.9%/+3.3%)

(0.0%/-2.9%)

(-10.1%/-6.5%)

1,005 $340 739 NW Outer

CENTRAL

NE Outer

LEASED

7,539

Central

(-0.5%/-3.6%)

Perth

MEDIAN RENT

$350 (-2.8%/-5.4%) LISTINGS

5,072 (-4.9%/-11.2%)

SW Outer

SE Outer SOUTH EAST LEASED

1,144 (-9.9%/-10.3%) MEDIAN RENT

$320

SOUTH WEST

(+3.2%/-3.0%)

LEASED

MEDIAN RENT

LISTINGS

1,961 $320 1,239

LISTINGS

(-1.8%/-3.4%)

(-1.5%/-5.9%)

(-9.4%/-22.1%)

(-10.4%/-9.6%)

34

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REIWA.COM MARKET UPDATE

| December 2017 quarter

796


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