RECOVERY in the north eastern property market will be patchy with the Perth Hills likely to take less time to recover than Ellenbrook.
Momentum Wealth director Damian Collins, who is the new Real Estate Institute of WA president, said at the moment there was a two-speed market with some segments of the market experiencing initial signs of recovery, while others were experiencing oversupply and would therefore not see this effect for longer.
Mr Collins said as the cities of Swan and Kalamunda and the Shire of Mundaring were outer local government areas they had a mix of both established residential areas and rural pockets that were yet to be urbanised.
“There are areas within this that are well-established with infrastructure and transport links, which offer better fundamentals for property investment than the outer areas where there are foreseeable supply pressures,’’ he said.
“For investors, it’s really about selecting the right property in the right pocket.
“As an example, our property managers are seeing a positive rental market in Forrestfield due to recent planning changes that have supported gentrification, as well as recent infrastructure upgrades and proximity to future transport links.
“Investors looking to benefit from growth in the current market need to focus on property selection, ensuring their prospective property has the right fundamentals in place for growth such as surrounding infrastructure, proximity to transport links and strong future demand.
“Overall, these local shires will show mixed results, and I’d expect oversupplied areas such as Ellenbrook to remain a tough market, with the outlook for established suburbs in the hills and foothills remaining more promising.’’
Meanwhile, house unit and land sales in the north eastern suburbs all fell during the June quarter, according to reiwa.com data.
REIWA’s Market Update said a total of 325 home sales had settled so far for the quarter at a median sale price of $425,000.
Once all transactions settle it was expected house sales would increase to 538 and the median price would settle at about $445,000.
This would represent an increase of 1.1 per cent to the median price and a 6.3 per cent decline in sales.
Multi-residential (unit) sales in the north eastern suburbs also declined during the June quarter.
Fourteen sales had settled when the Market Update was compiled but once all transactions had settled the data suggested sales would increase to 21 and the median price rise to $275,000.
This would represent a fall of 6.8 per cent in the median price and a 36.4 per cent fall in sales.
Vacant land sales in the north eastern suburbs also fell sharply.
Fifty land sales had been completed at a median sale of $229,000 but the Market Update said vacant land sales were likely to increase to 101 and the median price settle at $236,000.
This would represent an 8.9 per cent decline to the median price and a 50.2 per cent decline in sales.
By Anita McInnes