Perth’s western suburbs are benefiting from an increase in market activity which has been apparent since the start of this year. Initially, prices were slow to rise however we are seeing consistent evidence that this market sector has passed the ‘bottoming’ stage and values are now trending upwards. Properties in the sought-after suburbs, for example Nedlands, have seen reduced days on the market along with strengthening prices and drastically low stock levels particularly at the entry price points. This is resulting in fierce bidding on entry level properties and causing prices to increase. Important to note however, that we are not out of the woods quite yet as the first three weeks of April saw activity ease again but we believe this is just a momentary lapse. It appears that a large portion of stale and poor quality housing stock has gone with the majority of existing stock being of high quality.
Cottesloe and Mosman Park have been the stand-out performers with very strong activity right through all price ranges. Buyers who have deferred their decision to trade up until now will likely pay a little more. The challenge is now finding something to buy and be prepared to compete for it.
The general north coastal corridor has seen an increase in activity over the preceding six month period with stock levels declining and buyer demand increasing. Prices have remained relatively steady with small increase increments in the high end within the Trigg to Hillarys coastal stretch. Selling periods are reducing dramatically particularly in the mid to higher end range.
The sought after more affordable areas of Carine, Duncraig and Padbury have seen dwindling stock levels with an increase in demand. The outer north coastal areas of Yanchep, Two Rocks through to Mindarie are struggling with high stock levels and limited demand which has caused further value reductions however not as drastic as seen in 2016 into 2017. Burns Beach and Iluka are considered to have ‘good buys’ at the moment with selling prices being far lower than that of replacement costs. Scarborough and immediate surrounds still have high stock levels due to the higher density however an increase in transactions and demand is being experienced.
There is an increasing interest in smaller development sites in locations such as Warwick, Greenwood and Kingsley however in areas such as Balga and Nollamara there is some interest but there still appears to be an oversupply of the end product in these markets.
The more established areas of Kingsley, Stirling etc where there is good established infrastructure and amenity are performing much better with stabilising values moreso in the $600,000 to $800,000 price range.
It is apparent that suburbs in the fringe areas for example Ellenbrook, Aveley, Dayton etc continue to struggle both in the established and construction markets with values of new builds failing to reach replacement costs.
Areas located within the City of Fremantle are experiencing increased market activity and particularly in the precincts of South Fremantle and North Fremantle with the growing popularity of South Terrace and Queen Victoria Street hubs. Real estate agents operating in Fremantle report a spike in interest and property sales from interstate buyers who see this market as being inexpensive and offering all of the amenities and character whilst being within close proximity to the beach.
Suburbs situated in the City of Melville are also enjoying an increase in activity with competitive market conditions in the $800,000 to $1,500,000 range. Vacant land that is sub-divided, of a good shape and being streetfront is selling quickly with multiple offers being received.
There are many under construction developments or proposed developments in the pipeline in and around the activity centres located along Canning Highway in Ardross, Applecross and Mount Pleasant, with the latter two suburbs in particular benefiting from significant development projects. A number of developments are also underway around Garden City in participation of the revamp and expansion of this major regional centre. Zoning densities under TPS6 have been increased which allow for multiple dwelling developments and this is driving further activity.
The south-eastern suburbs have seen an increase in demand and more noticeably in the popular locations of South Perth, Como, Kensington and Victoria Park, with stock levels declining and buyer demand increasing. Prices have remained relatively steady overall. Selling periods are reducing especially in the mid to higher end price range. The mortgage belt areas are unfortunately continuing to struggle with high stock levels and limited demand and this has caused further reduction in values.
Certain housing product such as character properties typically found within East Victoria Park and Victoria Park have been very strong performers however conversely for example small home units within the City of Belmont have been slow to sell with a reduction of price required in order to enact a sale.