October sales activity provides confidence to the Perth market

During October, Perth sales activity experienced growth with a 2.7 per cent increase when compared to October 2019.

Top suburbs for sales activity growth

According to reiwa.com data, Yanchep showed the largest increase in sales activity growth with a 133 per cent increase and the majority of the sales that occurred were land sales.

This was closely followed by East Victoria Park with a 100 per cent increase, Cloverdale with an 86 per cent increase, Hammond Park which was up 67 per cent and rounding out the top five was Aveley with a 63 per cent increase.

Land sales in October

Over the last few months, land transactions have dominated sales activity due to the HomeBuilder grant, however if we break down sales activity in October, land sales decreased 27.1 per cent when compared to sales in October 2019.

While this number is a significant reduction, it demonstrates that most people jumped onto the grant as soon as it occurred. It could also be because there are limited land titles and there are only a small number left for people to purchase in their desired location.

House and unit sales in October

Despite the decrease in land sales during October, houses saw a seven per cent increase when compared to October 2019 and units increased 20.4 per cent. It is pleasing to see these numbers increase after a subdued market over the last few years.

Part of the reason for the increase in unit sales is due to the WA Government’s initiative to provide a 75 per cent rebate for off-the-plan purchases. First home buyers who are looking for a unit can also apply for the first home owners grant for new property, and potentially pay no stamp duty, which enables them to get into the housing market quicker than they normally would have.

Top sales activity growth suburbs for units

The suburb to see the biggest spike in sales activity growth in units during October was Fremantle with a 40 per cent increase. This was followed by Rivervale (up 25 per cent), Innaloo (up 25 per cent), Tuart Hill (up 22 per cent) and Rockingham (up 18 per cent).

Source: reiwa.com.au