16 November 2017
Housing affordability remains a hot button issue across the nation, and rightfully so. It’s a significant concern for a growing number of West Australians, particularly those on low and very low incomes, many of them facing the prospect of never being able to afford a home of their own.
Housing affordability has improved in WA
Despite this growing issue, house prices in WA have become more affordable over the last couple of years and have not increased at the rate they have in other states over the past decade. For example, Perth’s median house price for the year to June 2017 was $520,000, which is only approximately $60,000 more than it was at the same time in 2007.
By comparison, the Sydney housing market has seen its median house price increase by a staggering $600,000 over this same period, making it substantially more difficult for first home owners to enter that market market.
We are fortunate the dream of home ownership is still very much attainable in Western Australia. In fact, REIWA analysis shows it’s more financially attainable to be a home owner in 2017 than it was in 2007, with West Australians now spending a smaller percentage of their total income on mortgage repayments than they did a decade ago.
Specifically, home owners were spending approximately 56 per cent of their total income on mortgage repayments in 2007, whereas today that figure has reduced to 27 per cent. This improvement in affordability for WA home owners can largely be attributed to average income levels having increased since 2007. At the same time interest rates have gone down and house prices have remained relatively on par.
Perth property market appears to have stabilised
Home buyers remain in a strong position in Perth, but the signs do indicate the local property market has stablised.
Since July 2017, reiwa.com’s monthly data has revealed steady figures across a number of key indicators, such as median house price, median rent price and listings for sale and for rent. Historically, one of the strongest indicators a property market may be on the cusp of ‘turning’ is a period of stability.
Now is the time to buy
If you’ve been holding off making a property purchase because you’re waiting for the ‘bottom’ of the market to buy at the lowest possible price, I’d advise you to take action sooner rather than later. We don’t usually have the luxury of calling the ‘bottom’ of the market until we have the benefit of hindsight; meaning, we’re not certain the market has turned until it’s on the way back up.
With improved house prices, record low interest rates and a healthy supply of stock to choose from, now is the time to take advantage of Perth’s favourable buying conditions.
31 October 2017
Peter Williams via thewest.com.au
Billionaire Kerry Stokes has added his weight to the view that conditions are ideal for entering the housing market, staking his reputation on now being the best time to take the plunge.
The Seven Group Holdings and Seven West Media chairman said the situation came as the State showed it was recovering from the shock of miners cutting their costs by a combined $10 billion in recent years.
“Right now any young person out there, any apprentice, worker, tradesman — the best thing they’ll ever do in their life is walk out this weekend and buy a home in Western Australia,” Mr Stokes told a WestBusinessLeadership Matters event on Tuesday.
“With interest rates low, housing prices low, this is the time to think of their future right now. I’d put my reputation on the fact this is the best time for them to do that,” he said.
“If that’s the case and everybody else agrees with that, then we’re past the bottom.”
Mr Stokes’ remarks follow Housing Industry Association figures showing affordability in WA had improved dramatically, in part because of national efforts to tighten bank lending standards for investors.
In the past two years, loan repayments on a median-priced house in Perth fell by more than $260 a month, or $3120 a year. Elsewhere in WA, they fell to $1545 from $1773 a month.
Kerry StokesPicture: The West Australian
However, a report yesterday showed Perth had the nation’s second-most expensive residential land prices at $730 per square metre, a 5 per cent gain over the year to June. The Housing Industry Association-CoreLogic Residential Land Report said land prices rose by 19.6 per cent in Melbourne and 9.8 per cent in Sydney.
Mr Stokes said the State’s economy was showing signs of improvement after miners’ efforts to improve efficiency had contributed to the downturn.
Leadership Matters Lunch with The West Australian: Country Chair for Shell Australia Zoe Yujnovich. Photo by Michael Wilson, The West Australian.
Ben WyattPicture: The West Australian
“So when they’ve saved some $10 billion in costs that’s supposed to come out of workforces in WA. That’s a shock we have to get over and we’re actually getting over it now.”
WA Treasurer Ben Wyatt told the event that competition in the retail gas market had largely offset the increases the McGowan Government had imposed on electricity tariffs.
Discounts of up to 30 per cent are on offer with new player Origin Energy this month, joining AGL, Kleenheat and Alinta in the gas price war.
At the Leadership Matters event are WA Newspapers Group Business Editor Ben Harvey, Treasurer Ben Wyatt, Rob Scott (Wesfarmers), Zoe Yujnovich (Shell), Tom O’Leary (Iluka) and Kerry Stokes. Pictures: Michael WilsonPicture: Pictures: Michael Wilson
Mr Wyatt said that situation could last until the early 2020s.
Incoming Wesfarmers chief executive Rob Scott said while the loss of disposable income and lower population had hit retail businesses hard, there was cause for optimism.
“We still see opportunities,” Mr Scott said. “We see a good path for growth.”
17 October 2017
Are you preparing to sell your home in Perth? Home staging and styling has become a big trend, particularly in this challenging market. Potential buyers will judge your home and form their opinions before they even attend a home open through the online advertisement, so it’s important to make a good first impression.
By making some small but effective changes, your property photos can play an important role in enticing buyers to attend your home open.
Here are five budget friendly tips to help style and stage your home for a sale.
1. De-clutter your space
The first thing you will want to do when listing your property for sale is to de-clutter and throw out or donate any items you do not want following you to your next home. It is also recommended to store away any personal items just for the home open to create a neutral space for potential buyers. This can include:
- Personal photos.
- Artwork on the fridge.
- Letters and bills.
- Toiletries and clothes (keep these neatly packed away in the cupboard or draws).
De-cluttering creates more space and shows off the storage potential of your property, whilst also allowing potential buyers to imagine their own life and personal items inside the house.
2. Clean up
Once you have de-cluttered, it’s a good move to clean your house to ensure it’s presented in the best possible way for photos and home opens. Aside from general tidying and vacuuming, this can also include:
- Cleaning up the outdoor area – trim hedges, clear pathways, lay mulch or pebbles to tidy up garden beds and discard unruly weeds.
- Address any lingering odours – perhaps due to a blocked drain or a pet’s toilet training accident.
- Get your cupboards in order – buyers are going to open draws, cabinets and cupboards, so be sure to neaten things up in there and create the illusion of more space.
- Clean soiled items – such as stains in your carpet and curtains (including your shower curtain), and any other household items.
3. Update your paint colour
You may love that red feature wall in the living room, but it might not be quite to your potential buyers’ taste. The most effective way to style your home is to neutralise your space with lick of paint.
Choose neutral paint colours, such as whites, creams and light greys to freshen up your walls and hide any scuff marks or small chips. You can even go as far as re-painting cupboard doors or tiles to update your kitchen and bathroom.
4. Invest in some on trend décor
Update your décor with some on trend pieces, but be sure to not clutter the space. Small, subtle touches are best, not to mention easier on the budget, and can include:
- A statement rug or hall runner.
- Pillows and throws for your couch.
- Decorative ornaments and artwork, such as a vase with flowers or a trendy print.
Don’t be afraid to add pops of colour as well, especially if you have neutral walls and furniture.
5. Create a welcoming environment
For the home open itself, create a great first impression and a welcoming environment with small touches, such as:
- A scented candle or fresh flowers.
- Relaxing music.
- Ambient, comfortable lighting.
Be mindful of the season as well – perhaps pop on a fan or the air conditioner if it’s a warm day, or light a fire (if you have a working fireplace) to create a cosy atmosphere on rainy winter evening.
10 October 2017
The McGowan Government has handed down its 2017-18 State Budget and has listened to the concerns of the WA property industry by not meddling with property taxes.
In the Treasurer’s speech, the Hon. Ben Wyatt MLA advised the State Government did not consider increases to property taxes for WA residents as part of their Budget repair measures, recognising the impact of the three consecutive land tax increases in previous Budgets.
REIWA Deputy President Damian Collins said given the McGowan Government had faced challenges when it came to the State’s fiscal position, it was pleasing to hear there would be no increases to property taxes for WA residents.
The Government is planning to introduce a four per cent foreign owner duty surcharge on purchases of residential property by foreign individuals and entities from 1 January 2019. This is expected to create $49 million in revenue by 2020-21.
“The introduction of a new foreign owner duty surcharge could hinder overseas property investment. Despite foreign investors only representing a small proportion of the WA property market, caution must be placed to ensure this section of the market does not reduce further.
“The Government expects to create revenue from this surcharge, however, it may only worsen the situation in terms of transfer duty revenue, as potential foreign investors may be less incentivised to purchase residential property in WA,” said Mr Collins.
In its pre-budget submission, REIWA recommended the Government introduce five key areas of reform:
- Make no further changes to rates or thresholds for land tax.
- No increase to transfer duty rates or change thresholds.
- Undertake a state tax review to assess the viability of a shift to a broad-based land tax system that ultimately removes transfer duty.
- Maintain the existing transfer duty exemption for first home buyers at $430,000 and re-introduce the $3,000 First Home Owners Grant for existing dwellings.
- Introduce a $10,000 concession on transfer duty for seniors over the age of 65 to encourage ‘right sizing’.
“REIWA welcomes the State Government’s commitment to keep property taxes on hold for WA residents and whilst some of the reforms we recommended were not addressed in the Budget, we appreciate the current fiscal position,” said Mr Collins.
The State Budget also revealed that growth in the State economy is expected to recover from 0.25 per cent in 2016-17, to three per cent in 2017-18. Employment growth is also forecast to recover, with nearly 20,000 jobs expected to be created in 2017-18, attributed to a modest increase in population growth expectations.
“The McGowan Government should be congratulated on their efforts in reducing the State’s debt. REIWA will continue to work with the Government to help home ownership become a reality for more West Aussies and also assist the Government in getting the Budget back to surplus,” said Mr Collins.
18 September 2017
Buyers are often sellers too. Most people who decide to sell their home also look for an alternate property at the same time and it’s not uncommon for them to find something appealing before they have secured a buyer of their own.
What is a ‘subject to sale’ offer?
Buying a property “subject to the sale of another property” is common and REIWA agents are well equipped to ensure the sale agreement is procedurally correct.
Normally, these agreements enable the seller to continue to promote their property for sale and, in the event of receiving an alternate offer to purchase (normally not subject to the sale of that buyer’s property), give notice to the first buyer of their intention to proceed with the second offer after two business days.
This colloquially termed ‘48 hour clause’ provides the buyer two business days to obtain an offer on their property or waive the benefit of the subject to sale condition.
What does a ‘subject to sale’ offer entail?
Certainly, these arrangements can get tricky. Agents need to be especially careful not to prejudice the second party by giving the first buyer a hint that a second offer might be on the way. Notices served between the parties must also be technically compliant and strictly adhered to so as to not unfairly advantage either buyer.
A crucial point for sellers to be aware of is if they are accepting a ‘subject to sale’ offer, at say $600,000, this then binds them to that sale price within the 48 hour period – even if a second unconditional offer is higher (provided the original buyer can make their original offer unconditional within the 48 hour time frame).
’Subject to sale’ offers can benefit sellers
Although this type of sale requires more effort, contracts for sale that include the ‘subject to sale’ condition, often succeed and proceed smoothly to settlement.
This type of sale also has the potential to put the seller at an advantage, with the buyer often expecting to pay a premium for the privilege and protection of settling after the sale of their own property.
Given the conditional nature of the sale, sellers are justified in asking for a higher price from the subject to sale offer. There have been instances where the seller rejected a ‘subject to sale’ offer at a premium price, only to have that same buyer return to the same property after they’ve sold and pay a lower price.
I would advise sellers to consider all offers presented to them, including those that are subject to sale. In this market where competition is high between vendors, it’s in your best interest to give consideration to all serious buyers.
12 September 2017
With spring expected to draw an influx of buyers, and amid tight supply of properties for sale, Perth property prices could rise in the coming months, says Hayden Groves, president of the REIWA.
The Perth property market is showing positive signs as we head into spring and summer,” says Hayden Groves, president of the REIWA.
New data from the REIWA shows Perth’s median house price and median rent held steady in the three months to August 2017.
The median house price remained consistent at $515,000, and the overall median rent was stable at $350 – the fourth consecutive month rents have held steady.
REIWA President Hayden Groves said the results are “encouraging”.
“The stable medians are good news and indicate that sellers’ and landlords’ expectations are matching those of buyers and tenants,” said Groves.
Property listings down 10 per cent for the quarter
The reiwa.com.au data shows listings for sale eased one per cent lower in August, and are down 10 per cent compared with three months ago.
Groves said prices could rise in spring, when it’s likely demand will pick up.
“Traditionally in spring, there tends to be a lift in sales activity,” he said.
“There is potential for the median house price to increase in the coming months as we see more demand for housing and increased competition from buyers,” said Groves.
In the rental market, stock is down 10 per cent, and leasing activity is up 8 per cent
In the residential rental market, reiwa.com data shows stock levels declined by six per cent to 10,046 properties in August, and leasing activity rose by eight per cent.
“The boost in leasing activity is pleasing to see and has contributed to the declining trend in listings levels,” said Groves.
“Rental stock gets absorbed due to the demand from tenants,” he said.
05 September 2017
Nicole Cox via realestate.com.au
Perth’s property prices have dipped more than 10 per cent in the past three years, but a new report suggests evidence of some relief with the rate of decline abating.
The latest CoreLogic Hedonic Home Value Index shows house values in Perth have fallen by 2.6% so far this year, making it the worst performing capital in Australia.
In August, Perth property prices dropped 0.8%, compared to the 1.3% decline in July.
House prices suffered a 0.9% drop, while unit prices fell by 0.6%, bringing the median property price in Perth to $462,927.
In August, Perth property prices dropped 0.8%, compared to the 1.3% decline in July. Picture: Getty Images
August property data showed Perth and Darwin continued to endure declining dwelling values, which had trended lower over the past month and rolling quarter.
“However, the annual trend highlights the rate of decline has been easing,” the report says.
“Since peaking in 2014, Perth dwelling values have declined by a total of 10.8%, while the cumulative decline across Darwin has been more severe with values down 18.6% from the market peak.”
CoreLogic head of research Tim Lawless says despite lagging property values in Perth, it was still one of the most affordable markets in the country.
“The silver lining around the decline in values is a substantial improvement in affordability,” Lawless says.
On Tuesday, WA Housing Minister Peter Tinley told a Committee for Economic Development Australia that lower-income earners were still being priced out of the Perth property market, despite softening values.
Tinley said Perth’s shortage of affordable housing, coupled with stagnant wage growth and the high cost of living had contributed to low-income earners being unable to realise the great Australian dream of home ownership.
CoreLogic says national dwelling values remained flat during August, with capital city values edging 0.1% higher. Simultaneously, regional dwelling values slipped 0.2% lower.
The report says the slowdown in growth has been most visible in Sydney, while the Melbourne market has been more resilient with auction rates consistently above 70%.
22 August 2017
Author: REIWA President Hayden Groves
Modiefied via reiwa.com.au
Over the last couple of years as the Perth property market has slowed, there has been a lot of talk about ‘waiting for the bottom of the market’ to arrive.
In an ideal world, it would be crystal clear when the bottom had arrived and primed buyers could act immediately to secure their dream home, content in the knowledge they had purchased their property at the absolute lowest possible price.
How do you tell when the bottom of the market has hit?
The truth is, it’s virtually impossible to tell whether the actual ‘bottom’ has hit until it has passed and we’re on the upswing again. The best we can do is observe trends in the market and make an educated guess. It’s not an exact science and can be influenced by a number of external factors, such as the economy, consumer sentiment and state and federal elections.
In Perth, signs over the last quarter suggest our local market is beginning to stabilise, with all key indicators (median house price, sales activity, listings for sale, average selling days and discounting) recording little or no change in the three months to June 2017.
Historically, one of the earliest signs of a change of momentum in the market is a period of stability. Although no one can accurately ascertain the future of the property market, the signs are there that we have finally found, or are very close to finding, the bottom.
Take advantage of affordable conditions
If you’ve been thinking of buying a home or purchasing an investment property, but have been holding off for the ‘right’ moment to strike, I’d advise you to take action sooner rather than later. Although we might not be able to predict with absolute certainty the ‘bottom’ of the market, we do know that property markets are cyclical and conditions will change again.
With the signs there that we’re heading into a period of stabilisation, now is the time to buy. There is lots of choice in the market with listings for sale , so you are in the best possible position to find a home that meets all your requirements at a competitive price.
I would advise buyers who are considering purchasing property in this market to take advantage of the steady, but quieter conditions. Do your due diligence and view a range of different properties in suburbs that appeal to you to ensure you explore all your options.
If you’re unsure what the best move is, speak to us on 9475 9622 or email us at firstname.lastname@example.org about your plans. They are well educated on your local market and will be able to advise what is most suitable for your situation.
18 August 2017
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15 August 2017
Rachel Preston-Bidwell via reiwa.com.au
Perth home buyers looking to trade up are now seeing more opportunity in areas such as Peppermint Grove, Applecross and North Coogee, which topped reiwa.com’s list of affluent suburbs which have become more affordable.
REIWA President Hayden Groves said while prices in these suburbs were still well above the Perth median house price, they had become more affordable for buyers looking to trade up into those million dollar suburbs.
Peppermint Grove saw the biggest annual average change in its median house price over the past five years, shifting from $3,750,000 (year to April 2012) to $3,350,000 (year to April 2017).
“Buyers are looking for opportunities in areas with a good lifestyle scene, cafes and restaurants. In particular, we are seeing buyers placing more importance on proximity to good public schools.
“Suburbs such as Applecross, Nedlands and Peppermint Grove are within the catchment for some of Perth’s best public schools. Due to the easing off in median house prices of these suburbs, the opportunity is there to secure your ideal family home if you have the means,” said Mr Groves.
There’s also good news for sellers in Applecross, City Beach, Nedlands and Peppermint Grove, as properties are selling quicker in comparison to five years ago.
“In 2012, it took on average 120 days to sell a property in Peppermint Grove for instance. In more recent figures, the average selling days for the suburb sits at 90 days.
“We are also seeing sellers willing to negotiate and discount their initial asking price to achieve a sale,” said Mr Groves.
The average discount sellers in the five suburbs are applying to their asking price is around the eight to ten per cent mark in the year to April 2017 data.
“Both buyers and sellers are benefitting from the current market conditions in these million dollar suburbs,” said Mr Groves.
||MEDIAN HOUSE PRICE (YEAR TO APRIL 2012)
||MEDIAN HOUSE PRICE (YEAR TO APRIL 2017)
||AVERAGE SELLING DAYS (YEAR TO APRIL 2012)
|| AVERAGE SELLING DAYS (YEAR TO APRIL 2017)
|1. Peppermint Grove
|3. North Coogee
|4. City Beach
Figures based on median house prices in the year to April 2012 versus year to April 2017. Filtered for suburbs with greater than 15 sales, with a median house price of more than $1 million.
08 August 2017
Author: REIWA President Hayden Groves via reiwa.com.au
New reiwa.com data has revealed Perth sellers who choose to auction their property are achieving significantly faster selling times than those who sold using the more traditional private treaty method.
The results for the three months to June 2017 showed it took Perth sellers just 28 days to sell under the hammer, compared to the 70 days on average it took for private treaty sales – a notable difference of 42 days.
While still only a small component of the Perth market, Western Australians have become more familiar with this method of sales in recent times, thanks in large part to the popularity of TV shows like The Block bringing auctions into people’s living rooms.
Auctions and the East Coast
If you’re considering selling, there are many reasons why an auction can be the way to go in the current market. You only have to look to the success of this method on the East Coast to understand how powerful of a selling option it can be.
In Sydney for example, auctions represent approximately 33 per cent of all sales, while in Melbourne that number is close to half of all sales. By comparison, auctions are only around two per cent of all sales in Western Australia (based on March 2017 data).
Benefits of selling at auction
For the seller, one of the biggest benefits of going to auction is the sense of urgency and competition this method generates amongst buyers, predominantly due to the shorter marketing and campaign period of auctions.
When listings are plentiful and buyers have plenty of choice available to them, an auction can help your property stand out. Additionally, selling by auction provides reserve price protection and as the seller you have the opportunity to set specific terms of sale.
If you’re considering going to auction, familiarise yourself with how they work and discuss your options with a REIWA agent to ensure it’s the right selling method for you.
Buying at auction
Alternatively, if you’re a buyer interested in a property that is going to auction, do you research prior to the day so you’re well informed and know what to expect.
If you’re uncomfortable with the idea of bidding yourself, you can consider hiring a buyer’s agent who can provide advice before and on auction day.
They also help with a number of other tasks including due diligence on the property, researching the property’s value, helping you decide on your purchase price limit and bidding for you on the day.
Here at Porter Matthews Metro we have a well thought out Auction process and success rate, if you have queries as to how this method might suit you, please give us a call on 9475 9622 or email us at email@example.com
02 August 2017
Nicole Cox via realestate.com.au
Perth’s house prices took another dip in July, but the outlook is brighter for owners of units and apartments with an improvement in values, new data from CoreLogic shows.
Perth retained the unenviable title as the weakest performing property market in Australia, with a combined drop in dwelling values of 1.3% for July.
The CoreLogic Hedonic Home Value Index reveals that unit prices surged 1.8% in July and 4.2% in the past three months to a median price of $400,000, but house prices dropped 1.6% last month to return a 2.5% decline since the same time last year.
The median house price in Perth is now $498,200.
CoreLogic says there has been a slowdown in growth conditions in the hottest markets of Sydney and Melbourne.
At the other end of the growth spectrum, Perth and Darwin have continued to see dwelling values slip lower during July, taking the cumulative decline to 10.2% in Perth and 14.5% in Darwin since both markets peaked in 2014.
“The ease in the rate of decline has been most visible in Perth, providing a signal that the Western Australian capital may be approaching the bottom of the downturn,” the CoreLogic report found.
“Listing numbers have been falling across Perth which is a positive sign of improving conditions and transaction numbers have found a new floor at around 2500 sales per month.”
CoreLogic Head of Research Tim Lawless says while the market has slowed from recent highs, growth remains robust.
“I don’t think there is any one factor causing the market to lose steam, rather it is the culmination of several factors working together,” Lawless says.
“Higher mortgage rates and tighter credit policies have dented investor appetite. This is clear from the RBA’s monthly credit aggregates which show investment related housing credit growth has consistently slowed from late last year.”
He says higher mortgage rates are now also impacting on interest only loans as well as fixed rate loans, which is likely to further deter some prospective buyers.
18 July 2017
July 14, 2017 6:00am
Perth’s property market could be about to turn the corner, experts say.
WA PROPERTY markets could go from the nation’s worst to its best-performed over the next two years as buyers regain confidence in the State and go cold on the rest of the country.
National Australia Bank analysis suggests WA has reached the bottom after several years of falling property prices, growing rental vacancy rates and the biggest fall in rents since the early 1990s.
NAB chief economist Alan Oster said there were clear expectations among property analysts that the WA market would improve relative to the rest of the country over the next two years.
“In WA, where the local housing market has under-performed relative to the Eastern States after the mining investment slowdown, house prices are expected to rebound and grow 1.3 per cent,” he said.
Experts surveyed by NAB believe Armadale, Bentley, central Perth and Scarborough look the best prospects in the city.
Sydney and Melbourne have seen double-digit price increases in the past two years but the NAB survey believes these two will slow down.
Victoria’s market is tipped to be the weakest within two years, with WA vying with Queensland for top spot.
The improvement in the WA market is tied to a lift in the jobs market.
The survey found employment security was the single largest impediment for buyers of existing property in WA but, with signs the jobs market has bottomed and may be improving, this is tipped to be less of a negative in the next two years.
Mark Passmore, of Passmore Real Estate in Morley, said there had been a noticeable lift at the higher end of the market, which was a sign the entire market was shifting.
He said interest was growing in sought-after suburbs where prices had dropped over recent years as confidence in the overall market and economy had improved.
“You can feel that the market is at a pivotal point,” Mr Passmore said.
He said a drop in the price of land had brought developers back into the market while more varied selling methods, such as auctions, were being used to get buyers back.
30 May 2017
The Western Australian State Cabinet decision to move forward with the strata title reform process has been commended by the Real Estate Institute of Western Australia, Strata Community Association WA, Property Council of Australia and Urban Development Institute of Australia WA.
Announced this morning, the Honorable Rita Saffioti MLA said strata title reform was important to the future housing needs of WA and the McGowan Government would be progressing with this legislation as quickly as possible.
The proposed reforms to the Strata Act, which were drafted by Landgate, cover off seven key areas:
- Community title schemes
- Leasehold strata
- More flexible staged strata development
- Improved management
- Simplified dispute resolution
- Better buyer information
- Safeguards for the termination of schemes
REIWA President Hayden Groves said reform to the Strata Titles Act was long overdue and he was pleased the new State Cabinet would be implementing these reforms.
“REIWA is committed to the strata title reform process, and we are particularly supportive of more buyer information being disclosed and making sure buyers know what they are getting into,” Mr Groves said.
Strata Community Association President Scott Bellerby said the drafted reforms are desperately needed and would help provide more flexible and sustainable housing options.
“The current reforms are a good first step to helping define the role of the strata manager and will provide improved management of schemes, however, further regulation and licensing is still needed.
The Minister should commit to the formation of a working group after the current reforms are passed, to deliver a licensing platform for the State Government to adopt early next year,” Mr Bellerby said.
Property Council Executive Director Lino Iacomella said the introduction of community titles in particular will make a real difference by encouraging more mixed use development in and around activity centres and retirement villages, offering greater amenity to residents and more sustainable local economies.
“These reforms will also provide better outcomes for communities, improving housing choice and affordability for all West Australians,” Mr Iacomella said.
UDIA WA CEO Allison Hailes said The Urban Development Institute of Australia strongly supports the proposed reforms to the Stata Title’s Act, particularly the introduction of community title schemes, leasehold strata and staged strata development.
“The reforms will bring Western Australia’s strata titles legislation in to line with other Australian jurisdictions and result in more affordable and diverse housing being delivered. UDIA encourages all decision makers to support the passage of the new legislation through Parliament as a matter of priority,” Ms Hailles said.
The property industry congratulates Landgate and the McGowan Government for taking a leadership position on such a vital component of the future of WA property.
10 May 2017
Perth’s property market continues to encourage first home buyers, with the latest preliminary data for the March quarter 2017 revealing the bulk of transactions occurred within the $400,000 to $450,000 price range.
REIWA President Hayden Groves said market conditions in the March quarter highlighted that housing affordability remains an east coast issue.
“While the dream of home ownership is becoming increasingly difficult in some parts of Australia, particularly in Sydney and Melbourne, this isn’t the case in Perth.
“First home buyers remain active and continue to take advantage of improved affordability and choice in the market to secure a property that meets their needs. These factors, combined with record low interest rates, makes for positive buying conditions for those looking for a first home,” Mr Groves said.
Median house and unit price
Perth’s median house price slipped back over the quarter, with the preliminary median coming in at $505,000 for the three months to March 2017.
“This softening in median price is due to the ongoing trend of comparatively more transactions occurring in the lower end of the market, with fewer sales of properties in the $700,000 to $1.5 million price range. However, once all transactions have been accounted for, it’s likely the median will lift to around $517,000, just shy of December’s quarterly median,” Mr Groves said.
Perth’s preliminary median unit price held up reasonably well over the quarter, coming in at $411,750 for the three months to March 2017.
“In the unit market, although there were more transactions occurring in the $350,000 to $450,000 price range, early indications suggest there was also a boost in volumes between $600,000 and $1 million, which has kept the unit median strong over the quarter,” Mr Groves said.
The preliminary total dwelling sales figure for WA came in at 6,496 for the three months to March 2017.
Mr Groves said this figure was below the revised December quarter 2016 sales figure, which wasn’t unusual.
“Although preliminary total WA dwelling sales figures are down compared to the December quarter, once all transactions for the March quarter have been recorded, we expect this figure to lift to approximately 8,500, putting this quarter’s activity levels on par with the December 2016 quarterly figures.
“Additionally, early indicators suggest a rebound in house sales in the Perth metro area for the March quarter, with transactions expected to lift to around 6,500. This would put house sales volumes in the Perth metro region for the March quarter up significantly higher than the December quarter 2016 and marginally above the same time last year.
“These stable, moderately improving market conditions provide for equitable buying and selling conditions for both buyers and sellers,” Mr Groves said.
Listings for sale
Listings for sale in Perth increased over the quarter, sitting at 14,845 at the end of March 2017.
“It’s common for listings to rebound in the March quarter following the seasonal dip in listings over the festive period. This quarter’s listings figure is similar to levels experienced in the latter half of last year.
“Stock levels have been well controlled with total listings having declined by 2.7 per cent compared to the March quarter 2016,” Mr Groves said.
Average selling days and discounting
On average, it took vendors 70 days to sell their property in the March quarter.
Mr Groves said the proportion of vendors needing to discount their asking price held steady over the quarter at 55 per cent.
“We’ve also seen an improvement in the amount vendors are having to discount by, with figures revealing the average discount had fallen to 6.4 per cent in the March quarter, from seven per cent in the December quarter 2016,” Mr Groves said.
12 April 2017
Modified by realestate.com.au
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Read more here why Auctions are becoming more popular in WA.
Perth real estate agents are predicting an increase in the popularity of auctions over traditional offer-acceptance sales in Western Australia, saying auctions could help fuel the state’s dull property market.
Auctions are not typical in Perth and only represent about 3% of the market, but agents and auctioneers say that is changing, with a growing number of vendors favouring auctions over private treaty sales.
CoreLogic data shows the number of auctions in Perth is on the rise, with 1964 held last year, compared to 1692 in 2015. So far this year, there have been 404 auctions in Perth.
First National Druitt & Shead Doubleview principal and auctioneer Rob Druitt says auctions have become more popular because it heralds speedier sales in a slow market.
Druitt says auctions enable the vendor to get a quicker understanding of where their property sits on the market, with the intensive marketing campaign usually spanning 30 days.
“The other important phenomenon is that in this market, the ‘no price marketing’ clearly isn’t working… because the market is driven by price. If your price is right then the market will see value and you’ll get offers.
“Price is the driver in this market. Buyers are looking for value.
“In inner-city Melbourne… 80-90 % of properties sell by auction. In Perth, you’re only talking about 2-3 % of total transactions. It’s a smaller number but it is rising and there’s a number of prominent firms around Perth who are embracing it more and realising the benefits for both the buyer and seller,” he says.
Acton chief executive officer Travis Coleman says the number of auctions in Perth has been on the rise for the past three or four years.
“A lot of people are doing it because we’re moving from a market where there are extended days on market and we’re trying to shorten that and bring the price discussion to a head in a shorter time.
“Auctions are not just limited to the upper end of the market. [Acton Coogee agent] David Bombara is doing it down in Spearwood, the mortgage belt areas, with great success and actually selling quite a few properties prior to auction,” Coleman says.
He says auctions are a transparent property sales technique and generally mean quicker turnaround times, rather than having a property sit on the market for four to five months, or in some areas even longer.
Realmark Western Suburbs director Adam Gilbert says the increased take-up of auctions across Perth was due to the competitive market and shortage of supply.
“What the market wants is transparency. In a market where there isn’t a real understanding as to what is a real price, what is a market price and what is an agent price – the market is saying just give me an opportunity to have a go.
“Auctions are very transparent, very honest, aligned with what the market wants and they do bring urgency not only for the buyer but the seller… to make the best decision in a shorter period of time.
“I think agents in WA need to get in tune with the current market. The market is evolving, the landscape is changing, technology is assisting buyers to gain information in a much shorter period of time so I think we give our sellers the option to consider auctions,” Gilbert says.
But CoreLogic head of research Cameron Kusher says with declining values in Perth it is unlikely that auctions will become more popular in the short-term.
“Auction volumes were a little higher last year than they were in 2015 for Perth, however, auction sales still represent a very small proportion of the overall market.
“Although selling by private sale in Perth is tough, a lot of vendors probably feel as if it is not worth the additional expense to sell at auction, particularly when the success rates have typically been well below 50% this year,” Kusher says.
02 March 2017
via Community News
THE Perth rental market is showing signs of improvement, with leasing activity for the December 2016 quarter 23.8 per cent higher than the December 2015 quarter.
REIWA president Hayden Groves said reiwa.com data showed all five sub-regions in Perth experienced notable increases in activity over that time.
“While conditions in the rental market remain challenging, the spike in leasing activity levels between December quarter 2015 and December quarter 2016 is a real positive for the market,” he said.
“Tenants are very active and are taking advantage of favourable conditions.”
Leasing activity also lifted on a quarterly basis, increasing 1.9 per cent in the three months to December.
“All but two of the sub-regions saw a lift in activity over the quarter, with the South-East region the stand out performer,” Mr Groves said.
“At a suburb level, the big winners for leasing activity in the December quarter were Burswood, up 78.9 per cent, Palmyra, up 70.3 per cent, Melville, up 59.1 per cent, Langford, up 54.5 per cent, and Beechboro, up 53.8 per cent.”
Tenants continued to benefit from Perth’s current rental market cycle, with the overall median rent price (houses and units) falling to $360 per week in the December quarter.
Mr Groves said median rent prices had softened slightly across all sub-regions.
“In good news for investors though, there were numerous suburbs within each sub-region that bucked this trend to record increases in their weekly median rent prices over the quarter,” he said.
“Ocean Reef and Burswood in particular saw substantial increases to their median rent prices, which can be attributed to a greater proportion of higher priced rentals leasing during the period. In both these suburbs there was stronger demand for three to five bedroom homes, which usually command a higher weekly rent comparative to smaller properties.”
On average, it was one day quicker to lease a property in the December quarter than it was in the September quarter.
“On an annual basis, the average days to lease a house or unit have come in by almost a week, with reiwa.com data showing it was six days faster to find a tenant in the December quarter 2016 than it was in the December quarter 2015,” Mr Groves said.
07 February 2017
via @The West.com.au
The new year has delivered a small boost to Perth’s beleaguered property owners with values lifting in the first month of 2017.
Figures from CoreLogic show dwelling values in the city improved by 0.2 per cent in January to be 2.1 per cent up over the past three months.
The increase was driven by units with values lifting by two per in the month. Over the quarter, unit values were only up by 1.5 per cent and down by 3.8 per cent over the past year.
House values were flat but thanks to a pre-Christmas improvement they were up by 2.2 per cent over the quarter.
Through the past 12 months, however, values were down by 3.2 per cent.
Nationally, values were up by 0.7 per cent led by a 1.8 per cent increase in Hobart house values.
House values in Sydney lifted by another 0.5 per cent to be 16.6 per cent up over the year while house values in Melbourne have improved by 12.9 per cent through the year.
CoreLogic head of research Tim Lawless said there were signs the bottom of the market had been reached in both Perth and Darwin where values have climbed by 1.8 per cent over the past three months.
“Buyers still have a great deal of leverage in these markets, with listing numbers remaining high, long selling times and high rates of discounting,” he said.
“However, in another indication that conditions may be moving through the bottom of the cycle, transaction volumes moved higher across both markets prior to the seasonal downturn in December and January, whilst the average selling time reduced from previously higher levels.
“With economic and demographic conditions remaining weak in these markets, a recovery in dwelling values is likely to be a slow process.”
Since January 2009 Perth is the worst performed property market in the country with values up by 8.1 per cent. In Sydney, values have jumped by 99.4 per cent while in Melbourne they have lifted by 85 per cent.
28 September 2016
via @The West Australian
Real Estate Institute of WA President Hayden Groves said the mining downturn had had a big impact.
Four years ago 1500 people a week were moving to WA, that’s now dropped to just 150 a week.
Across Perth in the past year, the median house price has fallen by 4.8 per cent.
Since the peak in 2014, the reduction is more like a 6 per cent.
In Melbourne, prices have increased by 8.2 per cent in the past 12 months.
The list of Perth’s cheapest suburbs is dominated by the south – three suburbs now have a median price of $300,000 or less.
View the Video and more of this story here.