Perth’s western suburbs took home the silver in the apartment sales race during the first three months of this year, narrowly missing out to the inner city. The western suburbs only had 12 active projects compared to the inner city’s 27. However, 55 apartments were sold in the suburbs, which is just 19 behind the 74 sold in Perth’s inner city.
In total, 258 apartments were sold across the Perth metro area during the first quarter, and there was a total of 134 active projects, meaning the western suburbs and the inner city accounted for almost a third of them. An active project refers to housing that’s finished being built or currently being sold.
The inner city’s performance is a huge improvement on the previous quarter, with just 48 apartments being sold in the three months before and including December compared to 74 in the first quarter of this year. Similarly, three more apartments were sold in the western suburbs in the first quarter compared to the previous one despite the housing market being quieter.
Referring to property sales at TRG’s Empire West at Perry Lakes, Mirvac’s Latitude at Leighton Beach, and Blackburne Property Group’s Aria in Swanbourne, Mr. David Cresp, the director of property economics and research at Urbis, said: “The apartments in the western suburbs are being sold to local people.”
There Could be Trouble Ahead
The total value of all apartment sales during the first quarter was $167 million, which is roughly the same as the previous quarter. However, these record sales – especially in the western suburbs where sales haven’t been as high since the final quarter of 2015 – we’re largely unanticipated, but experts say it comes down to unmet demand.
Unfortunately, Mr. Cresp says the apartment market is facing a challenge going forward despite the unmet demand, primarily because buyers are uncertain that apartments will retain their value. Plus, with it taking three years to make constructions ready for sale, it’s difficult to ensure supply meets demand.
“Real estate market confidence is a real problem because by 2020, in Perth, we will have an undersupply of apartments,” explained Mr. Cresp. “This year is going to be the peak level of supply.”
In Perth, apartments represent just 20 percent of the total number of dwelling approvals, which is significantly lower than Brisbane’s 40 percent, though that figure has fallen from the previous year’s 50 percent.
What Can You Do to Ensure Your Apartment Retains Its Value?
While the housing and apartment markets can be uncertain at times, and it’s hard to predict what the future holds, there are a few tried and tested tricks that can help you increase the value of your property. People want an apartment that’s ready to move in as soon as they’ve signed the contracts, meaning you need to make interior design a top priority.
At Furniture Fitouts, we may not be estate agents, but we are experts in interior design, and we offer complete packages to transform your apartment into a stylish masterpiece in the space of three days. From furniture to electrical appliances and cutlery to linen, we can renovate every aspect of your apartment to help you prepare it for the market and get a fair offer. Contact us today for more information.