21/10/2010 - 15:13

Perth's housing supply up: RP Data

21/10/2010 - 15:13

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The latest figures from RP Data show Perth has the greatest effective supply of residential houses of Australia's capital cities at 9 months.

Perth's housing supply up: RP Data

The latest figures from RP Data show Perth has the greatest effective supply of residential houses of Australia's capital cities at 9 months.

For all national capital cities, the effective supply of properties is currently 4.1 months.

RP Data research analyst Cameron Kusher said there are two ways of measuring the amount of supply in the residential market place.

Firstly he uses 'core supply' which is the difference between base level demand such as population growth and base level supply which comes from new dwelling construction.

The other measure is known as 'effective supply' which is the number of properties for sale in the market place.

Mr Kusher said that the Perth result suggests that the market remains consistent and has recorded the greatest effective supply amongst all of the capital cities since the beginning of 2008.

"The Perth market has been recording a poor market performance for much of the period following the significant surge in property values recorded in the city between 2005 and 2007," he said.

"Since that time, sales volumes have become sluggish and clearly, a significant volume of properties have been available for sale which has resulted in an elevated level of effective supply.

"The soft market conditions within the city are reflected by the fact that on average there was 7.6 months of effective supply in the Perth market - property values increased by 4.4 per cent since the beginning of 2007," said Mr Kusher.

He said that he didn't expect further increases in effective supply in Perth.

According to the RP Data figures Sydney has 3.2 months of supply, Melbourne (2.8), Brisbane (5.9) Adelaide (4.6) Darwin (8.0) and Canberra (2.2).

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