The first three months of 2018 saw projects that appealed to first home buyers. Palmyra Estate (37 sales for the quarter) and Velocity in Cannington (24 sales for the quarter) both had successful launches. These projects provided an affordable product that appealed to first home buyers.
David Cresp, Director of Property Economics and Research, said, “The considerable increase in Owner Occupier sales this quarter was driven from both ends of the market.”
At the other end of the spectrum was the downsizing owner-occupier attracted to more luxurious apartments, resulting in premium location sales.
“The top-selling developments for the quarter included projects in Floreat, Applecross, Scarborough and Ascot. These projects had average sales prices from $640,000 to $1.2 million and were successful in attracting owner-occupiers.” noted Mr Cresp.
This quarter 55% of sales (226 sales) were in projects in a presales stage, up from 34% in the previous quarter. This result demonstrates a renewed confidence in the Perth apartment market and increased demand for quality new developments.
There were six new project launches amounting to 702 apartments in the quarter. This was the highest number of new apartments launched in the last 12 months and reflects growing confidence in the market from developers.
Apartment development approvals remained low in the quarter, with only 257 new apartments approved. Though new approvals remain low, this allows existing approved stock to be absorbed into the market.
The Perth apartment market recovery continues, and along with it, we are seeing more activity in the downsizer market, driving owner-occupier sales.
Mr Cresp suggested, “As long as developers are able to provide consumers with apartments which more than meet their needs in locations which otherwise would not be affordable, we expect this market segment will continue to grow.”