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Savvy buyers to take opportunities 20/08/2016

The property market remains relatively quiet in 2016 and the latest UDIA land market statistics represent the great opportunities that current market conditions can provide to buyers.

The property market remains relatively quiet in 2016 and the latest UDIA land market statistics represent the great opportunities that current market conditions can provide to buyers.

The number of lots available to the market has steadily increased over the last few years since shortages emerged in 2013 which negatively impacted on Perth’s housing affordability.

With more stock available on the market in 2016 (4574 lots as at June 30) lot prices have settled to an average of $237,373 for the quarter. That is a 3.9 per cent decrease on the June 2015 quarter and 9.6 per cent down on the March 2014 peak.

In terms of sales numbers, 1541 lots were sold in Greater Perth in the three months to June, which is a significant 22 per cent dip compared with the same quarter last year.

The continued softening of the land market is a clear reflection of the broader WA economy which continues to feel the pinch from the mining downturn. This has had a flow on effect on population growth which has slowed to 1.2 per cent as less people are moving to WA for employment.

Less people coming to the state and an increase in people leaving to find work elsewhere means that we are experiencing a short-term dip in demand for housing. As we well know from past experience, these conditions can change rapidly.

Savvy buyers will be looking to take advantage of current conditions, particularly as interest rates remain at record lows.

According to our statistics, locations to watch are in the North West Corridor which includes the significant growth areas of Wanneroo and Swan. This corridor has built on its status as the most dominant corridor, holding the highest market share of sales in Greater Perth (28.8 per cent).

The South West Metro Corridor which includes Cockburn and Kwinana recorded the biggest increase in market share with 24.6 per cent, up from 16.4 per cent in March.

If you are looking for the cheapest land, then the Shire of Murray in the Peel region had the lowest average price of lots sold for the Greater Perth region at $152,568.

Keeping to the Perth metro area, the Shire of Serpentine-Jarrahdale had the lowest average prices at $202,460. Serpentine-Jarrahdale was also one of the only local government areas apart from Rockingham and Gosnells that experienced a slight lift in prices compared with last quarter.

Interestingly, the City of Cockburn has the highest price of land per square metre at $1710. This is a reflection of the successful higher density urban infill projects that are being undertaken in that area.

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