ACTON, a WA-based real estate group with 20 offices, has posted a 60.90 per cent on-month surge in sales in February as signs emerge that the state's property market is finally turning.
"These are very encouraging signs that the market is experiencing a sustained turnaround," said ACTON managing director Graeme Baxter.
"To support this we are also seeing improvements in areas of the market that have languished over the last 12 months. ACTON South West has seen sales increase significantly and sales in the upper end of the market have also improved, with a marked increase in multi-million dollar sales.”
ACTON South West, which operates in the Dunsborough, Margaret River and Busselton region of WA, recorded 39 sales for the month, just up on ACTON Mandurah, which booked 35 sales in February.
Sales for the month were 43.43 percent higher than February 2011, and is the highest monthly result seen in a number of years for the group. The result equated to 8.6 sales per day, or one sale every 2.77 hours.
The result comes as Perth recorded the lowest residential vacancy rate in Australia, coming in at 0.6 per cent in January, according to SQM Research. The Real Estate Institute of WA (REIWA) also reported that statewide dwelling sales rose by four per cent in the December quarter to around 9,600, although the annual dwelling sales for 2011 were the lowest in 20 years.
“However, in positive news the number of properties on the market was down by 12 per cent on the same time last year, the number of sellers who were discounting fell and the average level of discount being offered by these vendors was reduced,” REIWA president David Airey said in February.
ACTON also reported stronger interest at auctions, with a number of properties being sold under the hammer in February.
“At a recent auction in Claremont the two spirited bidders only saw the property for the first time on the morning of the auction, which reflects the change in buyer sentiment,” the company said.
Mr Baxter said buyers had previously waited until the property was passed in before making an offer.
“There was always the chance that another buyer could put in an offer that was higher, but they were prepared to take that risk," he said.
"Now buyers are starting to realise that other parties may be interested in the property and if they really want to buy it they will have to participate in the auction.
“The greatest benefit for them is that the auction is an open forum and they can see what other buyers are willing to offer and can make a higher offer it they want to."