Market stable as downsizers head to Yanchep

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The property market has recorded stable conditions in both the June and September quarters, according to REIWA.

AS the property market continues to stabilise a Yanchep developer says up to 50 per cent of its recent land releasers have been bought by downsizers.

The Real Estate Institute of Western Australia said preliminary September quarter data showed steady or improved levels across most key market indicators.

President Hayden Groves said conditions in the September quarter had mirrored those experienced in the June quarter, which indicated the Perth property market may have finally found its floor.

“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results,’’ he said. “Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment.’’

Capricorn Beach estate project director Jarrod Rendell said many downsizers moving to Yanchep were selling their big established home for more than $550,000 which meant they had money left after they built their new home, which they could use for lifestyle purposes such as travelling.

Mr Rendell said the latest ABS figures showed there were 351,326 people in WA aged between 40 and 49 years of age who would start turning 50 this year.

“That is more than the estimated 328,883 young people who will turn 25 years of age in WA over the next decade and become potential first home buyers,’’ he said.

“(In Yanchep) downsizers are generally buying 300sqm to 400sqm lots where they can build a brand new home within walking distance to the beach.

“They are attracted to the affordable coastal lifestyle Yanchep has to offer with house and land packages at Capricorn Beach starting $351,540.’’

Mr Groves said Perth’s preliminary median house price for the September quarter came in at $499,000.

“Once all sales have settled, we expect the revised September quarter median to lift to around $515,000, an increase on the June quarter’s $510,000 median,” he said.

REIWA analysis shows Perth’s median house price only experienced a marginal one per cent decline when compared to the same time last year.

“Comparatively, between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent,’’ he said.

“These longer term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago,” he said.