Australian Dwelling Values Hold Firm In March With Regional Values Recording a 0.4% Rise

According to the CoreLogic hedonic home value index, national dwelling values were unchanged in March, with the steady month on month reading comprised of a 0.2% fall in capital city dwelling values while the combined regional markets saw values rise by 0.4%.

Trends across the March quarter showed that capital city home values were 0.9% lower over the March quarter, while values across the regional markets have tracked 1.1% higher.

Regional markets are now consistently outperforming the combined capitals:  CoreLogic head of research Tim Lawless said, “The stronger combined regional markets performance continues a trend that began to emerge in October last year where regional housing markets  showed an overall improvement in the pace of capital gains while the combined capitals trend softened.”

CoreLogic Hedonic Home Values Indices Results


Focusing on the capital cities, six of the eight capital cities have recorded a fall in values over the first quarter of 2018, ranging from a 1.8% drop in Sydney values to a 0.1% fall in Darwin.

Focusing on the capital cities, six of the eight capital cities have recorded a fall in values over the first quarter of 2018, ranging from a 1.7% drop in Sydney values to a 0.1% fall in Darwin.

Mr Lawless said, “The broad-based falls highlight that the softening trend in the Australian housing market is largely due to weaker conditions in Sydney, however, most other capitals are also recording subtle falls.  Dwelling values were steady over the quarter in Brisbane and have continued their strong run of growth across Hobart, up +3.4%.”

The unit sector across Sydney and Melbourne has shown stronger conditions relative to detached housing.  Mr Lawless said, “The March home value indices results also confirm that the unit sector is now consistently outperforming the detached housing market – a trend which has been evident since mid-2017.  The stronger performance is subtle at the combined capitals level: capital city house values were down 1% over the March quarter while unit values were down a more moderate 0.7%.”

More significant differences between houses and units can be seen in Sydney and Melbourne where housing affordability pressures are more evident relative to other cities. Sydney unit values are up 1.9% over the past twelve months, while house values are down 3.8%.  Similarly in Melbourne, unit values are 6.6% higher over the past twelve months while house values are up just 4.9%.

Mr Lawless said, “The stronger performance from the unit sector may suggest that buyer demand is becoming more concentrated in the medium to high density sector where entry prices are lower and commuting times are often more convenient when compared with the detached housing markets around the outer fringes of the city.

Perth house and unit medians stable in March

Perth’s median house and unit prices were stable in March, with data showing both sectors of the housing market were holding up well.

REIWA President Hayden Groves said Perth’s median house price had increased 0.5 per cent to $517,650 in March, while the median unit price had remain unchanged at $407,000.

“It’s pleasing that both house and unit prices are strengthening at the same time because it suggests one sector of the market hasn’t started to recover at the expense of the other.

“Unit prices in Perth are following the same trends we have observed in house prices, with March being the third month in a row the unit median has remained stable,” Mr Groves said.

The top performing sub-markets for median house price growth in March were South Perth/Victoria Park, Fremantle, Belmont, Vincent/Stirling SE and the Western Suburbs, while in the unit market Joondalup South, Cockburn, Stirling West, Bassendean/Bayswater and Stirling East were the stand-outs.

“Buyer confidence in Perth is increasing and based on where we are seeing the biggest improvements in price growth, so is demand for multi-residential dwellings in medium to high density areas,” Mr Groves said.

“Additionally, optimism among sellers appears to be returning with data for March showing listings for sale increased three per cent over the month.”

“Consumer sentiment in WA is currently the highest it’s been since mid-2013 when we were at the height of the resources boom. Sellers are feeling more confident as market conditions have picked up and subsequently more motivated to list their property for sale.”


Tips for Selecting a Property Valuer

The following list details 8 helpful tips for selecting a property valuer.

  • Conduct reference checks with other Lenders/Mortgage Insurers.
  • Check the valuation firm has adequate Professional Indemnity Insurance (and there are no unusual or restrictive conditions that could void the policy).
  • Review the company profile information (number of valuers and experience, background of directors/company, quality assurance processes, valuation systems used etc).
  • Ensure the property valuer is local to the area or has sufficient staff to cover designated areas.
  • Ensure all property valuers are qualified and registered (where required) and are members of an industry body (such as the Australian Property Institute).
  • Request a sample property valuation report to ensure it satisfies your requirements and provides adequate information. Ensure the report format is easy to read, highlights issues clearly and complies with industry standards.
  • Do not select a property valuer based on cost alone. Be prepared to strike a balance between cost and quality to ensure you get a detailed valuation report that satisfies your requirements.
  • Maintain regular contact with your valuers so you can provide feedback on valuations and they can provide information relating to market conditions.

Contact Major Valuations to see how we can assist with your property valuation, phone 9355 3411. Major Valuations are Licensed Property Valuers and Real Estate Consultants based in West Perth, Western Australia. We offer independent residential and property valuation, commercial and industrial services, specialised property and land valuation, property consultancy and general real estate advice.

Clear signs of recovery, stability in Perth rental market: REIWA

Perth’s median rent has been stable for nine months, leasing activity held up well over the holiday season, and listing numbers, vacancy rates, and days on market are down.

After three challenging years of tough market conditions, new REIWA data shows the Perth rental market has stabilised.

REIWA president Hayden Groves said the institute’s data for the December 2017 quarter indicates the Perth’s rental market bottomed out in 2017.

“After a prolonged period of falling rents, soaring listings, and record high vacancy rates, the market has strengthened,” he said.

“The December 2017 quarter results signal a stable market, which is welcome news for landlords and property investors,” said Groves.


Perth’s overall median rent price remained at $350 per week during the December 2017 quarter, the third consecutive quarter at that rate.

“Where rents were once declining every quarter, we’ve now observed nine months of steady prices,” Groves said.

Over the year, weekly median rent declined only $10.

This is a “significant improvement” on the previous year, when Perth’s weekly median rent declined $40 between the December 2016 quarter and the December 2015 quarter.

“Annually, the rate of decline has slowed considerably which is pleasing,”Groves said.

The data shows a number of suburbs saw increases in weekly rent over the December quarter.

The top five suburbs for median rent growth in the December 2017 quarter were:

  • Mindarie ($565 per week),
  • Attadale ($455 per week),
  • Bicton ($370 per week),
  • Shelley ($430 per week), and
  • Shoalwater ($295 per week)


There were 13,555 rental properties leased in the December 2017 quarter.

“Despite the traditional lull of the festive season, leasing activity only declined 1.6 per cent during the December 2017 quarter.

“It’s good to see that leasing activity held up well throughout the holiday season,” Groves said.

The suburbs with the biggest improvement in leasing activity volumes during the December 2017 quarter were:

  • Madeley,
  • Kingsley,
  • Inglewood,
  • Piara Waters, and
  • Cooloongup.


There were 8,912 properties for rent in Perth at the end of the December 2017 quarter.

Groves said Perth rental listings have declined substantially since their peak of 11,300 in 2016.

“Listings have declined 8.4 per cent on a quarterly basis and are down 13.9 per cent compared to the December 2016 quarter,” he said.

Construction of new dwellings has slowed, and existing stock is being “soaked up” by the market, said Groves.

In addition, population growth in Western Australia rose to 0.84 per cent in the year to June 2017.

“New entrants into the state soak up rental stock first,” Groves said.


It took 49 days on average to find a tenant in the December quarter, five fewer days than it took in the previous quarter.

Average leasing days were also down three days compared with same quarter for the previous year.

“Healthy leasing activity and declining listings has increased demand, which means tenants are needing to act faster to secure a rental,” said Groves.

“It also shows landlords are listening to the advice of their property managers and pricing their properties competitively from the start,” he added.


Perth’s December 2017 quarter vacancy rate was 5.5 per cent, its lowest level since the September 2015 quarter.

The December rate compares with 6.9 per cent in the September 2017 quarter, and 6.4 per cent in the December 2016 quarter.

“Perth’s rental market has improved across the board in recent times which has had a very positive effect on the vacancy rate,” concluded Groves.


Strata Titles Act Reform

Landgate is now well advanced delivering major reforms to strata legislation. Landgate is delivering the strata reforms because there have been no major reforms to strata legislation in 21 years. Landgate intents to introduce to Parliament in mid 2018 reforms to the Strata Titles Act.

The strata reforms will improve the way things are done in strata by making strata better for owners and residents and introducing new land development options to drive economic growth. Strata reform will deliver major benefits for owners and residents in strata. Strata managers will be regulated and made accountable.

Community title, leasehold strata and improved strata schemes will enable integrated land development along the transport corridors of Metronet and above train stations. Affordable housing can be provided with leasehold strata.

The key elements of the strata reforms are two new types of strata: Community title and Leasehold strata:
• More flexible staged development
• Improved management of schemes
• Simplified dispute resolution
• Better information for strata buyers and
• Safeguards for the termination of schemes.

Community title is a new type of strata which has multiple sub-schemes within an umbrella community scheme. Each sub-scheme has its own strata company.

Leasehold strata is a strata scheme set up for a fixed period of 20 to 99 years. The buyer acquires a long term lease of the lot, the strata lease. The owner of the strata lease is issued with a certificate of title.

The owner of the strata lease can transfer the lot and the strata lease and can also mortgage the lot all without needing the consent of the lessor. Leasehold strata is used in other parts of the World for development of train stations and to provide affordable housing.

The reforms will make staged development of strata schemes more flexible. It’s difficult to vary a staged scheme development now under the Act. The reforms will allow more flexibility in how staged schemes are developed. This will cut red tape and allow faster development of staged schemes.

Strata reform will improve the management of schemes by:
• allowing electronic notices, voting and record keeping
• by strengthening by-law enforcement
• empowering strata companies to improve common property and
• making it easier to install sustainable infrastructure such as solar panels

The strata reforms will simplify strata dispute resolution. Currently strata disputes are heard in 4 different forums which include 3 Courts and 1 Tribunal. Research has proven that the State Administrative Tribunal or SAT is very effective in resolving strata disputes.

SAT will become the one-stop shop for strata disputes. The reforms will strengthen SAT’s powers to resolve strata disputes quickly and cheaply.

Reforms to termination will introduce safeguards for owners require a transparent process be properly followed the vote is only one part of that process even if the required vote is reached the termination proposal must undergo a fairness and procedure review by SAT. Vulnerable owners will have access to funding to respond to the termination proposal. Buyers of strata will receive better information. The strata information summary will be easier to read and electronic disclosure will be allowed.

Strata is very important to the WA economy. WA has over 300,000 strata lots which are worth over $170 billion. Strata is becoming more popular 40 to 50 percent of all new land subdivisions in WA are strata.Strata is more than just apartment housing, it is also used for commercial, retail and industrial premises.

Landgate are proposing to provide time forthcoming for community consultation prior to reintroduction of the Bill to Parliament.

Article statistics sourced from Landgate, Western Australia, January 2018

Suburb Snapshot – Highgate

REIWA advised trend for the week ending 2nd February 2016, reported sales increased 36% to 723 sales this week, as sales continue to trend up following the Christmas and New Year dip.
This week’s increase can be attributed to a 34% increase in house sales, as 35% increase in unit sales and a 49% lift in land sales.
In line with the increase in sales, the total number of properties listed for sale this week declined 1% to 14,782, from 14,997 last week
Listings for houses and units have both seen a 1% decrease, while land listings dropped off 3%. Despite this, listings remain 3% higher than four weeks ago and 15% higher than the same time last year.
Turning to the rental market, and REIWA members reported a 1% decline in the total number of properties available for rent over the week, with the figure dropping from 10, 104 last week to 10,042 this week.
This figure is 2% higher than four weeks ago and 58% higher than the same time last year.
Overall the Perth Property market is showing signs of stabilising with the latest REIWA research showing that the median house price increased to $540,000 for the quarter ending 31st December 2015.

Suburb Snapshot – Highgate
Highgate is an inner city suburb 2km north of the Perth CBD with a population of just under 2000 people. Highgate boasts a charming mix of heritage/art deco influenced real estate set within a vibrant entertaining percent with a wide range of restaurants and coffee/gift Shops.
Beaufort Street is the hub of Highgate, with pubs, wine bars, shops, restaurants and cafes. In 2015 median house price was $985,000 and was a top performing suburb with a 2015 growth in price 11.6% and opposed to the overall Perth metro region which showed -1.8%.

Woowza – North Fremantle and Coolbellup growth of over 20%

The Perth metropolitan residential housing market has according to REIWA research seen a slump in sales activity with an over supply of listings. As of the week ending 17th June, 2015, there was 14,369 residential property listings compared to the same period last year of 10,714. An increase of 200 listings occurred in the month leading up to the 17th of July.

The metropolitan region median house price is holding at $550,000 with an average selling period of 70 days.

The fastest growth suburbs within the Perth metropolitan area was North Fremantle with an annual growth rate to 31/03/2015 according to REIWA of 24.8% with a median price of $1,310,000 with a total sales volume of some 65 properties in the 12 months to 31st march 2015.

The next best performing suburb was Coolbellup with an annual growth rate of 20.7% for the year ending 31st March 2015. These two suburbs show a sharp contrast in purchaser profile. North Fremantle is a small riverside suburb with a population of some 2,700 while Coolbellup is a modest location with a population of some 4,900 with a sales volume of approx 175 for the 12 month period to 31st March 2015. Owner/occupiers were the dominant purchaser cohort in North Fremantle while first home buyers and investors were the significant buyers in Coolbellup where the median house price is currently at $545,000.

Market update as at 26th November 2014

Sales activity has been more subdued lately with listing growth also slowing.

Overall sales fell 8% this week to 797 the lowest in four weeks.

Top selling suburbs to week ending 26th November for north of river were East Perth and Dianella. While south of river Baldivis took top spot.

Growth in listings has slowed over the last two weeks.

Source REIWA

Perth market steady in August, but sales slump…

Current data from the Real Estate Institute of Western Australia released on 29th August, 2014, show no movement in Perth’s median house price for August.

REIWA president David Airey said the metropolitan median price was steady at $540,000 but that sales turnover had slumped. ‘Turnover for houses is down by almost 25% for the three months to August, however there is always a seasonal dip in sales during the winter months and this tends to pick up as we head into Spring weather,’ Mr Airey said.

There were 1,734 reported sales in the month of August, down by 6 per cent on July. Sales were weakest through cities of Stirling, Fremantle, Vincent and Kwinana along with the western suburbs. Mr Airey said low consumer confidence was impacting on the market. “The number of properties on the market is up by 1 per cent for the month of August, now sitting at 10,049 listings,” Mr Airey said.

Increased listings were strongest through the cities of Bayswater and Bassendean, up by 54 properties to 406, and also through City of Vincent, up by 30 properties to 215. Listings fell most strongly through the northern end of Joondalup, dropping 43 properties to 231.

Mr Airey said the rental market was also showing signs of stabilisation, with no change in the median rent.

Perth winners and losers….

A number of prestige suburbs have lost value while a mix of suburbs have shown strong growth.

Residential Suburban Winners

The following suburbs recorded the largest growth in Median House Prices in the last 12 months end 30th June 2014, according to REIWA data.

Alfred Cove 24.9% growth

Coolbinia 20.4% growth

East Cannington 20.0% growth

Wembley 19.6% growth

Golden Bay 19.3% growth

Swanbourne 18.8% growth

Rossmoyne 18.1% growth

Kenwick 18.0% growth

North Fremantle 17.9% growth

Helena Valley 17.7% growth

Residential Suburban Losers

The following suburbs recorded a decline in Median House Prices in the last 12 months ending 30th June 2014, according to REIWA data.

Mt Lawley – 5%

Menora – 4.7%

City Beach -1%

Dalkeith – 1.1%

Cottesloe – 4.2%

Claremont -7%