10/03/2016 - 13:17

This week's property round-up

10/03/2016 - 13:17

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Reiwa members reported a decrease in weekly sales to 528 for the week ending March 8.

Reiwa members reported a decrease in weekly sales to 528 for the week ending March 8.

The overall 25 per cent decrease in sales over the week is attributed to a 21 per cent decrease in sales for houses, 20 per cent for units and 55 per cent for land. Total properties listed for sale remained at 15,178, unchanged in percentage terms in comparison to the previous week.

There has been no change in percentage terms for house and land listings, while listings for units increased marginally (1 per cent).

The total number of listings for the week ending March 8 was 1 per cent higher than four weeks previously and 11 per cent higher compared to the same time last year.

Turning to the rental market, Reiwa members reported total properties available for rent increased by a marginal 1 per cent over the week to 9,875. This is similar to levels at the start of February but 55 per cent higher than the same time last year.

 

OWNERS HOLDING PROPERTY LONGER IN WA

In its 2016-17 State Budget Submission, REIWA included analysis of the declining trend in the turnover of the existing housing stock in WA.

Updated analysis covering the period from 1990-91 to 2014-15 indicates that as the dwelling stock in WA increased from 586,560 to 1,016,800, the average turnover time of the dwelling stock has increased from around 16 years to 24 years.

This indicates that owners and investors are holding property longer and above the 25 year long-term average of 16 years. As the graphic indicates, the peak turnover rate of 11 years occurred in 2005-06 during the height of the property boom and record turnover.

Conversely the longest turnover period of 25 years occurred in 2010-11 as markets across WA recorded turnover levels not seen since the 1990-91 recession.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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