Announcement posted by Smartline 24 Aug 2017
Lower supply of housing stock can lead to growth in sale prices, as we saw with vacant land in the recent quarter.
Despite the volume of land sales dropping 90%, the value of the sales jumped 6%.
Principle of Smartline Rockingham, Justin Smith, said that the WA Government’s commitment to infrastructure projects will see demand continue to grow for land, houses and units.
“We are expecting sales volume and median prices to rise over the remaining 2 quarters of this year as a direct result of infrastructure spending on public transport and new lifestyle and entertainment precincts throughout the state,” Smith said.
“The land sales volume in the last 12 months has exceeded 7,000, meaning we are expecting new dwellings to be built and enter the market over the coming 12 months. This is good news for contractors in the area and for first home buyers looking to enter the market at an affordable time.”
Some areas experienced significant growth with Northam, around 1 hour and 45 minutes from Rockingham, experiencing a 17% uplift in median sale prices. This demonstrates that there is still activity in the market and interest from investors and owner occupiers.
“We’ve seen strong sales volumes in suburbs like Maddington and Canning Vale. We expect that as the market picks up momentum into the second half of the year that the interest in suburbs further south, like Baldivis and Kwinana will intensify,” Smith said.