WHILE a property takes over two months to sell on average, a number of suburbs are bucking that trend. REIWA has listed Perth’s top 10 fastest-selling suburbs for the year to June 30, and most are in the western suburbs, with Parkwood the only exception.
There has been a significant change to the list since it was last published on www.communitynews.com.au in May, with four new suburbs claiming a spot in the top 10 and Craigie, Woodvale, Padbury and Floreat being knocked off the list.
Residential West spoke to local agents about the state of their markets and a common theme was there was an undersupply of stock in the western suburbs, which has resulted in well-priced properties selling quickly.
1. Shenton Park
Shenton Park is Perth’s fastest-selling suburb, taking on average 24 days for sellers to achieve a sale in the year to June 2017 – less than half the time of the overall Perth metro average.
The Property Exchange director Niki Peinke said there had been a real shortage of stock around the western suburbs all winter, but since the sun began to shine people were getting interested in selling once again.
“The properties around the Shenton Park area that are most in demand are character homes in the low to medium price ranges – these are very popular,” she said.
“There are definitely more buyers around in the higher price ranges also that are now coming out of the woodwork, which suggests that there is more confidence in the marketplace generally.”
Within the Subiaco/Shenton Park region, Ms Peinke said the apartment market was still challenging because of the wide choice on offer.
“We don’t expect this to change in the short term, until the surplus gets taken up, so there are some very good buys in apartments at the present time,” she said.
“Some of these are being taken up by investors who have been out of the market for some time, but more by first-home buyers and parents buying for children who are being attracted by the lower prices and see it as a chance to help with getting them into the market.”
Ms Peinke said downsizers were active, but struggling to find something suitable.
“This is where some of the new developments are coming into their own by providing lift access, reasonable space and proximity to shopping,” she said.
It was considerably faster to sell property in Leederville than it was in the overall Perth metro region in the year to June, with sellers in the area needing, on average, just 35 days to secure a buyer.
“We recently sold a home at 62 Richmond Street, Leederville which I feel reflects a shift or a refocus of the market,” Abel Property property consultant Adam Marchant said.
“This character home was beautifully renovated and extended and in essence reflected a specification and quality of product typically seen more broadly in the western suburbs.
“There was an enormous response with 103 groups of buyers through the home and ultimately nine registered bidders and an exciting auction response.
“The only unknown with bringing this asset to market was in relation to this price point translating across the Mitchell Freeway as the majority of comparable evidence existed in Subiaco, West Leederville and towards the coastal blue chip suburbs, but I found it interesting to note that the market had no hesitation in considering a vibrant inner city cafe strip precinct as a viable and attractive alternative.”
Mr Marchant said he has seen strong interest from buyers, many of which were upwardly mobile double-income professional couples, seeking quality housing in vibrant less traditional locations.
“Leederville is definitely experiencing a renaissance and you can see the remarkable transformation from Mt Hawthorn and its associated Scarborough beach road cafe strip precinct all the way down Oxford Street and you will see that this is driving a rapid transformation of the businesses including funky cafes and restaurants which are attracting a more discerning market,” he said.
“From a market perspective at the coalface so to speak, there is rapid turnover and competitive pressure with prospective buyers.
“The traditional picket-fence dream has morphed into a desire for vibrancy and uniqueness, (which means) exciting times for key inner city locations.”
3. Mt Claremont
It took approximately 36 days to sell a home in Mt Claremont in the year to June 2017.
Abel McGrath principal Simon McGrath said the shortage of stock on the western suburbs was leading to reduced days on market.
“The under $1 million section of the market is very buoyant,” he said.
“The $1.5 million – $2.5 million market is also extremely active.
“I’m seeing locals moving up and down the market and, for the first time in ages, some investors are emerging.”
Mr McGrath said a variety of buyers were active in the area and large blocks with old homes were in strong demand.
“I sold 29 Haldane Street, Mt Claremont for $1.3215 million; it was an original 1950’s home on 1100sq m,” he said.
“We had 8 registered bidders and it took off like a rocket.”
Following closely behind Mt Claremont, it took approximately 37 days to sell a property in Parkwood in the year to June.
Parkwood was also the only suburb on the list where buyers could snap up a home below the Perth median house price.
Maxpro licensee David Milkovits said buyers entering the market for the first time were active in there area and there was good demand for three and four-bedroom entry level homes below $470,000 that were well-maintained and presented.
“Units and villas (including duplexes) below $400,000 are also in demand,” he said.
“Larger four-bedroom, two-bathroom homes are also being sought by upgraders, however this area of the market is very price sensitive.”
5. West Leederville
Houses in West Leederville sold in around 39 days in the year to June.
Caporn Young sales executive Craig Gaspar said because of the huge variation of the types of properties within West Leederville there was strong interest at all levels, from a townhouse, the old cottages and the new modern architecturally built properties.
However price was still a factor in a quick sale.
“Buyers are still sensitive around price, and you will still find that if the property is slightly overpriced, it will sit on the market,” he said.
“The price range between $800,000 – $1.2 million is most sought-after, and sells very quickly, but we have buyers that have the ability to spend $2 million+ for the right property.”
Mr Gaspar said found West Leederville was particularly popular with the medical fraternity.
“It is close to all the hospitals, as well as freeway access,” he said.
“Professionals working in the city also like the easy access, while families are attracted by the community and schools.”
On average, it took sellers in Dalkeith 39 days to sell their property in the year to June.
William Porteous Properties International director Peter Robertson said activity in the Dalkeith market was on the rise.
“We are seeing very strong demand for brand new houses, with the Hamptons style proving very popular, and there is solid demand for large quality family homes with good bones for renovation,” he said.
“Block value properties in good locations are also constantly in high demand and currently in low supply.
“Dalkeith is a hugely popular destination suburb for families with children making up the bulk of the buyers we are engaging with each week, but we also have significant demand for quality downsizing options for some of our older clientele wanting to move out of their large properties but stay in the area.”
Mr Robertson said the good houses in the $3 million – $4million price bracket were selling well, as were are block value opportunities in the $1.8 million – $2.1million bracket.
A lot of interest was coming from interstate buyers coming out of buoyant market who view Perth prices as very reasonable.
It took sellers in Nedlands approximately 40 days to achieve a sale in the year to June.
Acton Dalkeith sales executive Martine Eyers said buyer demand for Nedlands, especially for properties South of the highway, was particularly strong.
“We recently sold a property in Nedlands after the first home open with multiple offers,” she said.
“This home had been on the market with another agent a few years ago and the market conditions certainly haven’t improved, however, we ended up achieving $70,000 more than the highest offer they had received previously.
“So despite the poorer market conditions with the lack of homes available for sale, there is more competition that is helping drive the prices up.
Mrs Eyers said with both Nedlands and Dalkeith sitting at record lows of available properties for sale there was a pent up demand for homes.
“We are also finding that we have seen a massive increase in off-market sales,” she said.
Like Nedlands, on average, houses sold in Subiaco in 40 days in the year to June 2017.
Growth Realty principal Enzo Pagnozzi said the appetite for quality properties in Subiaco was still strong among home buyers.
“This was evident with the sale of 8/291 Churchill Avenue Subiaco and 205 Churchill Avenue Subiaco last month,” he said.
“They are two very different examples of properties that are in demand.
“One is a three-bedroom, two-bathroom townhouse close to the cafes and shops on Rokeby Road; it sold for $875,000 in sold in the first week of marketing.
“The other is weatherboard and iron character cottage on a 377sq m block; it also attracted a lot of interest and sold for $850,000.”
Mr Pagnozzi said another example was 158 York St, a brick and iron character cottage, which sold at auction in August for $1 million.
“In these three cases the buyers were all home buyers and not investors,” he said.
“The active price range for properties is between $800,000 and $1.5 million as there is a shortage of available properties for sale in this price range.”
Houses in Claremont sold in around 42 days.
LJ Hooker Dalkeith-Claremont licensee Wayne Heldt said well-priced homes on larger parcels of land were proving extremely popular.
“Homes in the low $1 millions are very sought after,” he said.
“Typically though, $1.5 million – $2 million is a price point which is moving steadily.
“Houses area seeing far more interest than townhouses or strata homes.”
Mr Heldt said his agency was seeing a lot of buyers from outside of the western suburbs, particularly from the northern suburbs, with schools being a huge attraction for young families.
It took around 43 days for sellers in Wembley to achieve a sale in the year to June 2017, still significantly less than the overall Perth metro average.
Bexleys Real Estate licenseD agent Ray Jennings said the strongest demand in Wembley was for a home on some land, particularly blocks sized 650sq m or more.
“Newer homes on a sub-divided block, along with duplexes with some land attached, are attracting strong interest, however the unit/apartment market is still slow,” he said.
Mr Jennings said buyers looking at Wembley could expect an entry price of around $700,000 for a home with some land, with prices rising to $1.6 million, with strong demand and interest through this range.
Highlighting the demand, earlier this month Bexleys sold a four-bedroom, two-bathroom home with a pool, without it coming to the market.
“Buyers are predominately owner occupiers, who are local as well as from a range of other suburbs, wanting to relocate to be closer to the city, beaches and the vast range of schools colleges etc on offer,” Mr Jennings said.
“We recently sold a lovely home in Drew Street, within 18 days of the first home open, with several offers presented.
“It was owned by a family with young children and they were positioning themselves for the secondary education level, that is colleges and high schools.
“The buyers were a couple about to have their child and again schooling was a factor.”