Perth's million-dollar mystery

Perth's million-dollar mystery

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Six new suburbs have been added to the million-dollar property list in Western Australia, with a few suburbs making a surprise appearance after being knocked off the list last year.

Real Estate Institute of Western Australia (REIWA) president David Airey said some of these sales were very large blocks with single dwellings and ripe for multi-residential redevelopment.

“In 2012/2013 figures show sales of between one million and two million dollars accounted for 6.7 per cent of houses and 3.3 per cent of apartments, but this had grown in 2013/2014,” Mr Airey said.

“Current Landgate data shows sales of between one million and two million dollars accounted for 8.2 per cent of houses and 3.4 per cent of apartments, which pulled many more suburbs into the million-dollar club.

“Six suburbs are completely new to this list while others have returned from previous years after being absent in 2012/2013.”

REIWA states, over the last year an additional 26 suburbs in metropolitan Perth experienced house and unit sales of one million dollars or more over the previous year.

The six new suburbs to feature on the list are Ellenbrook, Huntingdale, North Lake, Piara Waters, Pickering Brook and Wandi.

Mr Airey has tipped Subiaco Oval (currently named Patersons Stadium under rights) to be a possible future site of high-density residential developments when the new Perth stadium opens in 2018.

Speaking on local radio last week, Mr Airey said Subiaco’s proximity to the city lends itself to high-density development. 

Managing director of SQM Research Louis Christopher is seeing an increasingly bearish housing market in Perth, with vacancy rates rising over the last 12-18 months in the city area and rent falling by over eight per cent in the past 12 months.

Mr Christopher said fly-in fly-out work is now non-existent due to job losses and an economic downturn that has caused many to move away.

“The rental market will remain weak. The sales market has held ground but I am quite concerned about the outlook. At its maximum there is a flat outlook for the next 12 months and the chance of a price correction in the marketplace with an adjustment in line with vendor expectations,” Mr Christopher said.

“It’s not looking healthy at this stage since the last five-year period has been influenced by mining and the interest rate outlook.”

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