PERTH’S western suburbs have emerged as an indicator of the general malaise experienced in the residential property market in 2011 with properties taking upwards of two months to sell, according to the latest statistics.
December quarter numbers from the Real Estate Institute of Western Australia indicate properties in the western suburbs (Claremont, Subiaco, Cottesloe, Cambridge, Nedlands, Dalkeith and Mosman Park) were sitting on the market for an average of 75 days, up 15 days from December 2010.
Figures released earlier this week by RP Data showed a bleaker picture, with five of Perth’s western suburbs ranked among the 10 suburbs nationwide that experienced the greatest 12-month increase in time on-market.
Mosman Park recorded the largest increase in days on-market, according to RP Data, with houses there taking, on average, 123 days to sell.
The town of Cambridge displayed a similar blowout in time on-market, up 42 per cent to 103 days.
Houses in Subiaco (up 40 per cent to 98 days), Claremont (up 37 per cent to 92 days), and Nedlands (up 36 per cent to 111 days) also reflected the sluggish state of the market.
REIWA president David Airey said the increased time it took to sell a house at the top end of the market was due to a combination of factors.
“The continuing oversupply of properties compared with demand is one,” Mr Airey told WA Business News.
“Real estate is a supply and demand market and there is a lot for sale in the Nedlands, Dalkeith, Claremont, Cottesloe, Mosman Park areas.
“The other reason is that those people with higher-priced homes tend to be more affluent and able to withstand a market downturn, so they are much more reluctant to take a lower offer. We often find that the attitude of sellers is ‘well if I don’t get that price, then I’m not selling it’.”
At the other end of the market, REIWA estimated first homebuyers made up 29 per cent of established market sales in the December quarter, while the total number of First Home Owners Grants paid in the December quarter was up 7 per cent on the previous period.
“The lower end of the market is ticking over reasonably well, the first homebuyers are active and there are a few investors around,” Mr Airey said.
“As you get up in price, if you take each quarter of a million bracket up to $750,000 to $1 million, it gets slower and slower, and transactions are significantly down at those particular price levels.”