Perth apartment sales have remained surprisingly strong despite widespread reports of a slowdown by developers and real estate agents across the sector.
Perth apartment sales have remained surprisingly strong despite widespread reports of a slowdown by developers and real estate agents across the sector.
Fresh research released by Urbis showed there were 668 sales across 114 projects in Perth in the three months to the end of June, a 41 per cent increase on the sales total for the December quarter last year.
The strong figures were despite anecdotal evidence, reported in Business News last month, that apartment pre-sales were a much tougher proposition to achieve than they were last year.
Urbis director of economics and market research, David Cresp, said there was a total of 2,456 apartments sold during the past 12 months, illustrating the continued strength in demand for apartments.
Mr Cresp said owner-occupiers were increasingly becoming a strong feature of the market, with 49 per cent of all sales in the June quarter to those planning to live in the apartments.
“This means only half of the apartments will enter the rental market, which should go some way towards addressing concerns around oversaturation of investment stock,” Mr Cresp told Business News.
Of the investment buyers, 30 per cent of sales were to Western Australian residents, while interstate buyers accounted for just 5 per cent of all sales.
Mr Cresp said suburban apartment projects were the standout performers, accounting for 40 per cent of all sales during the quarter.
The researched showed there were 109 sales in the inner city, 72 in the western suburbs, and 38 in southern coastal locations.
Nearly 270 sales, as well as eight of the 10 best-selling projects, were also in suburban locations.
“What we have in Perth now is a maturing apartment market, supported by an increasing acceptance of higher density living and a growing diversity in terms of the product that’s on offer,” Mr Cresp said.
“Although the inner city and city fringe precincts remain a focal point for high-rise developments, low rise and more affordable apartment buildings increasingly dominate the landscape of several town and suburban centres.
“Suburban urban renewal projects, combined with the state government’s focus on affordable higher-density housing and transport-oriented development, are set to significantly change Perth’s housing market.”
