Morning Briefing: Regional WA real estate struggles through September quarter

The September quarter carried some difficulties for the regional areas of Western Australia... Busy weekend for Sydney and Melbourne as auction volumes pass 3000...

Regional WA real estate struggles through September quarter
As it did for Perth, the September quarter carried some difficulties for the regional areas of Western Australia.

Figures from the Real Estate Institute of Western Australia (REIWA) have revealed that house, unit and land prices in regional WA all took a tumble over the quarter.

The median price for a house in regional WA fell by 3.4% to $370,000, while the median unit price moved down by 2.6% to $321,500 and land prices plummeted 7.4% to a median of $162,000.

While there was a fall over the quarter, REIWA deputy president Damian Collins said house prices in the state’s regional areas had been relatively steady over the last 12 months.

“The overall median house price for the year to September 2015 lifted a marginal 0.5%, or $2,000,” Collins said.

Along with the quarterly price falls, the state saw a drop in sales, with unit transactions falling significantly.

“Despite the year to September overall median house price lifting across the quarter, sales volumes did experience a decline across the September quarter, with house sales dropping 1.4 %, while unit sales fell 14.4%,” Collins said.

Those movements also had an impact on the rental market in regional areas, which unsurprisingly wasn’t a positive one.

“Regional WA’s median house rent for the September quarter was $375, which represented a drop of $5 over the quarter, while unit rent prices dropped $10 to sit at $330 per week for the three months to September,” Collins said.

“These declines in house and unit prices pushed regional WA’s overall median rent price down to $375 per week, which is $15 less than the June quarter.”

Looking at more specific locations, it was the areas south of Perth that performed the best over the quarter.

“The Peel region’s September 2015 annual median house price experienced a 2.4 % lift to $410,000 across the quarter, while the Great Southern region and South West region lifted 1.4 % to $360,000 and 1.2 % to $410,000 respectively,” Collins said. 

On the other end of the spectrum, the Pilbara region continued to be the state’s worst performer, with prices in Karratha and Port Hedland now having fallen by 27.5 % and 10.6 % respectively over the past 12 months.

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Busy weekend for Sydney and Melbourne as auction volumes pass 3000
Australia’s auctioneers are set for another busy weekend, with more than 3,300 homes across the country to go under the hammer this week according to figures from CoreLogic RP Data.

The selling season isn’t slowing in either Melbourne or Sydney, with the two combing for more than 2,700 auctions.

Melbourne will be the nation’s most active market for the week, with 1,563 auctions scheduled, a relatively similar amount to the 1,563 that were held during the corresponding week last year.

Last week Melbourne held 1,204 auctions and its clearance rate saw a weekly rise from 65.6% to 69%.

Last week Sydney held 1,248 auctions and it looks set for a similar number again this week, with 1,270 auctions scheduled.

While volumes are relatively similar over the week, vendors will be hoping the harbour city’s clearance rate records some upward movement after finalising at 58.4% last week.

That mark was down from the previous week’s 60.2% and is the lowest clearance rate recorded in Sydney since the Easter long-weekend in 2013 and was the ninth straight week Melbourne has recorded a higher clearance rate than Sydney.

The two busiest suburbs this week are Melbourne’s Reservoir with 29 auctions and Sydney’s Mosman with 20.

Brisbane is set to have a relatively busy weekend, with 207 auctions scheduled for this week, compared with 168 last week.

The other capital markets are set for quieter weekends, with auction volumes down from 122 to 97 in Canberra, down from 146 to 121 in Adelaide and down from 44 to 37 in Perth.
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