06/11/2009 - 13:26

Perth land prices surge 11% in Sep qtr

06/11/2009 - 13:26

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The state's median land price has surged 11 per cent in the September quarter, while house prices rose 2.2 per cent to a median of $460,000, new final figures from the Real Estate Institute of WA show.

Perth land prices surge 11% in Sep qtr

The state's median land price has surged 11 per cent in the September quarter, while house prices rose 2.2 per cent to a median of $460,000, new final figures from the Real Estate Institute of WA show.

REIWA's analysis of Landgate information showed the preliminary land price grew by 11 per cent, or $25,000, to $250,000 during the three months to the end of September.

However that figure is expected to come down as more settlement date is received, REIWA president Alan Bourke said.

"A last minute rush of first home buyers purchasing cheaper land at the end of September, just before the first home owners boost was halved, means late settlement data from these sales will drag the median land price down a little," he said.

"There is also evidence of stronger sales activity in land priced above $300,000, indicating that an increase in trade-up buyers has nudged up the median price of sales.

"We have also seen an increase in the median price of houses, lifting from $450,000 to $460,000, but representing more modest growth of 2.2 per cent.

"However, the good news is that this is a recovery in house prices of 5.7 per cent from the same time last year and points to steady growth over the medium term."

In regional WA, house prices also grew by 2.2 per cent, lifting the median from $360,000 to $368,000.

The median price for units in the metropolitan area experienced a modest increase of 1.9 per cent from $378,000 to $385,000 while regional units dropped 6.2 per cent from $325,000 to $305,000.

Currently, the WA residential property market has three other indices reporting contradictory movements of the median house price.

The Australian Bureau of Statistics measured that Perth's house prices had surged 4.5 per cent in the September quarter while Australian Property Monitors reported a 1.7 per cent rise to $494,409.

The RP Data-Rismark National Capital City Home Value Index, which the central bank uses, reported a 1.4 per cent fall to $482,163.

 

The announcement is below:

 

A significant jump in the price of residential land has been the main theme to emerge from the September quarter data issued today by the Real Estate Institute of Western Australia.

REIWA's data for the quarter, based on Landgate information, show that the preliminary median land price grew by just over 11 per cent during July, August and September.

However, REIWA President Alan Bourke said that while the median lot price in the metropolitan area is currently at $250,000, up by $25,000 since June, this figure would come down as more settlement data is received.

"A last minute rush of first home buyers purchasing cheaper land at the end of September, just before the first home owners boost was halved, means late settlement data from these sales will drag the median land price down a little.

"There is also evidence of stronger sales activity in land priced above $300,000, indicating that an increase in trade-up buyers has nudged up the median price of sales.

"We have also seen an increase in the median price of houses, lifting from $450,000 to $460,000, but representing more modest growth of 2.2 per cent.

"However, the good news is that this is a recovery in house prices of 5.7 per cent from the same time last year and points to steady growth over the medium term," Mr Bourke said.

Units in Perth witnessed a more modest increase of 1.9 per cent, lifting the median from $378,000 to $385,000.

Mr Bourke said the other key theme to emerge from the data was the increase in the number of rental properties in the market.

"The vacancy rate for rental accommodation has stretched out to 4.8 per cent, the highest level in 14 years, although the median rent has remained steady for nine months, resting at $360 per week," Mr Bourke said.

The number of properties for sale has dropped from 12,800 to 11,200, a fall of 12 per cent and representing a figure that is below the historic average for Perth.

The average number of selling days has come down from 69 in June to 64 in September, which is almost two weeks less than at the same time last year.

"Our seller sentiment indicator is also showing that fewer people are prepared to drop their asking prices too much, with our data showing that 74 per cent of sellers were prepared to drop the asking price by 3.9 per cent," Mr Bourke said.

In regional WA, house prices also grew by 2.2 per cent, lifting the median from $360,000 to $368,000, while regional units dropped from $325,000 to $305,000, a fall of 6.2 per cent during the quarter.

"Interestingly, land prices also grew strongly in the regions, up by 7.2 per cent, or $11,000, to a new median of $160,000 for a typical residential block outside of metro Perth," Mr Bourke said.

Mr Bourke said that overall, the results from the September quarter were encouraging and the high vacancy rate among rental properties was not surprising.

"As a large number of first home buyers took advantage of the Commonwealth boost, many renters have been able to move into a home of their own, in turn freeing up rental stock," he said.

 

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