Perth New Apartment Market Bounces Back

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The Western Suburbs registered over a $70,000 increase in weighted average sale price, and with the majority of sales, this impacted the overall Perth average.

A further two developments are expected to launch in the Western Suburbs in the next 6 months, bringing a total of 152 new units to the area.

Across Perth, the weighted average sale price lifted by over $14,000 to $661,566, however the increase was felt in only five of the nine Perth precincts. “The Western Suburbs registered over a $70,000 increase in weighted average sale price, and with the majority of sales, this impacted the overall Perth average,” Mr Cresp said. “However, looking at price at a product level, the most popular selling product types, one-bedroom, one-car and two-bedroom, two-bathroom units, both decreased in price slightly (less than $10,000) compared to the previous quarter.”

Three-bedroom plus product registered an increase in sales in the June 2017 quarter, with 13.5% of total sales compared to 7.7% in the previous quarter. The weighted average sale price of three-bedroom product increased by over $100,000 in the quarter, further contributing to the overall price increase across Perth. Once again, the Western Suburbs featured, registering 32% of all three-bedroom apartment sales.

This quarter, 50% of sales across Perth were owner occupier sales,” Mr Cresp said. “Understandably, owner occupiers look for bigger apartments in premium locations. Across Perth, a high level of three-bedroom product sits at development application and approval level, as high as 26% for the Fringe–South and 22% for the Western Suburbs precincts. Across Australia, only the Gold Coast comes close to this number of three-bedroom future supply in one of its precincts.”

“The market is starting to show signs of an increase in demand from the low levels seen late last year and early 2017. With many developments coming to completion over the next six months it is looking like a good time for purchasers to choose from a range of high quality new product.”