March Perth Monthly Market Wrap
It's been a good month in the Perth property market, with selling agents reporting higher attendance rates at home opens, multiple offers and days on market falling rapidly in some areas, which is great news!
The suburbs selling in the north are Innaloo, Morley, Scarborough and Clarkson, while Canning Vale, Como, Gosnells, Willetton and Carlisle are the top selling areas south of the river. These suburbs are all within affordable price range and located nearby the CBD.
Most suburbs performing well are typically well established within the 20 minute radius of the CBD, many of which are undergoing redevelopment and urban renewal. This opened a good opportunity for families taking advantage of the larger land offerings in these top selling areas as opposed to the usual smaller lots found in outlying, newer states.
With Perth’s average land size is significantly larger in comparison to other capital cities, the government has taken steps to increase density in the city to accommodate for future generations. The larger lot sizes offers in the middle ring are very attractive on a number of fronts.
With this, subdivision opportunities in many localities can foreseen at prices remaining at below historical levels. This will give us more choices for suburbs when we choose a new area in the future.
Poor market performance in the previous years has challenged potential developments from breaking ground as it has simply not been feasible to develop or more to the point, have the confidence to begin a development.
It's a good thing that there are signs of increasing confidence in the market and subdivision opportunities can be seen quite rapidly at present.
Upgraders are continuing to drive the purchase activity in the second tier. They are either looking for a better property within the area they already live, or moving into areas to which they have aspired. This is to the disadvantage of the outer ring suburbs though.
This seems to have prompted multiple buyer profiles to start honing in on the same property types, and agents reporting rapid declining stock levels which is always a very good indicator of market performance.
Herron Todd White reports the short and medium term prospects of the secondary tier appear to be very strong. The lack of confidence and lending restrictions to first home buyers curbed the performance over the past five years, along with over supply in the outer ring slowing the march of the upgrade market into more desirable areas, but this is starting to change.
We can anticipate that the market confidence will continue to recover through 2018 and stock levels in the secondary ring will tighten throughout the year.