27/05/2021 - 15:49

Perth apartment sales steady

27/05/2021 - 15:49

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Perth’s new apartment sales achieved its second highest quarter since Q1 2018, according to the latest data from Urbis.

Blackburne’s One Subiaco apartment project is under construction. Architect: Hames Sharley Image: Blackburne and Blank Canvas Studios

Perth’s new apartment sales achieved its second highest quarter since Q1 2018, according to the latest data from Urbis.

Urbis’ quarterly survey recorded 405 new apartment sales in Perth during the first quarter of the calendar year.

That figure was down slightly from the 455 sales achieved in the previous quarter, however Urbis noted that was boosted by Foundation Housing purchases.

Owner-occupiers continued to dominate sales, accounting for 70 per cent of surveyed sales in Q1, while investor activity showed signs of recovery, with approximately 121 apartments bought by investors.

The most new apartments were sold in the inner city, with 81 sales across Perth, East Perth, Northbridge and West Perth.

Perth’s fringe-east closely followed with 80 sales across Rivervale, Maylands, Victoria Park, Ascot, Lathlain and Burswood.

There was also notable sales activity across Perth’s south, where 62 apartments were sold spanning South Perth, Applecross, Mount Pleasant, Ardross and Como.

Meanwhile, strong buyer appetite continued to emerge for western suburbs’ stock, with 56 apartment sales for Q1 – which Urbis said was the highest level of sales for the area since Q1 2018.

The region also outperformed in terms of its weighted average sale price (WASP) of $1 million – well above any other precinct and significantly higher than Perth’s overall WASP of $658,084.  

Urbis director David Cresp said the pickup in the Perth real estate market was flowing through to the apartment market.

“Downsizers are now more confident in making a commitment to a new apartment as they are able to sell their house for what they believe it to be worth, the younger owner occupies are taking advantage of low interest rates to move out of rental accommodation to apartments in high amenity locations and the investor market was starting to re-emerge,” Mr Cresp said.

“The strength of the Perth property and job market was also meaning that there was more interest in Perth apartments from the east coast market.”

At the end of March 2021, Urbis recorded 1,280 newly built apartments remaining for sale – down from 1,594 last quarter.

That figure had also dropped from one year ago, when there were 1,838 built apartments available for sale.

Urbis noted that at a current sales rate, this meant that there was only 12 months of completed apartment stock which was the best result for some time and concluded that this demonstrated the market really was recovering well. 

However, future forecasts showed new completions in 2021 would hit their lowest level in recent years: 1,159 apartments forecast to be completed in 2021 compared to 1,667 in 2020 and 2,102 in 2019.

“In 2020 apartments only accounted for 9 per cent of all new dwelling supply across Perth (based on ABS Building Approvals data) this was down from 13 per cent in 2019 and compared to 25 per cent in Sydney,” Mr Cresp said.

“To keep up with increasing demand levels Perth will need to see a continuing pipeline of apartment supply.”

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