Perth's Apartment Market Shows High Demand & Low Supply

Perth’s Apartment Market Shows High Demand & Low Supply

By: Nfinity Financials0 comments

Perth’s apartment market is doing really well right now because more people are moving there and more people feel confident about buying apartments. A recent report by Urbis says that new apartments in Perth are selling really quickly, showing how much people want to buy them. The market saw a respectable number of sales in the first three months of 2024 – 248 purchases, the highest since late 2022 – despite certain issues.

High Demand Despite Fewer Apartments

Lots of people still want to buy new apartments in Perth, according to the Director at Urbis. But there aren’t many apartments available for sale. Right now, there are only 441 new apartments up for grabs, way less than the 1,518 available in the same period last year.

Experts say some developers are choosing to rent out apartments or keep them off the market because prices are going up. Experts said some developers are choosing to rent out apartments or hold onto them because prices are rising, according to experts.

Difficulties in Approvals and Launches

Getting new apartment projects approved and started has been slow. In 2023, only 453 apartments were approved, the lowest in years. But in the first part of 2024, there was a bit of improvement, with 508 apartments approved.

Making new apartment buildings has been tough for developers in the past two years, according to Experts, because of the challenges they face in getting new projects going.

Stabilizing Construction Costs

Construction costs, which have been worrying developers, are starting to stay steady. This steadiness is giving developers a better idea of what their future expenses might be. In the first part of 2024, construction started on four projects with 569 apartments, showing that developers are feeling more confident.

High House Prices Fuel Apartment Market

The very high prices of Houses in Perth, going up by 21% every year, are making apartments look better to buyers. In the first three months of 2024, the average price for new apartments went over $1 million. According to experts, developers have sold a greater range of apartments this year than they did the previous year.

This year, developers are on course to finish a large number of apartments in Perth, with 2,649 expected. Despite the fact that developers plan to complete a large number of apartments this year, experts noted that 70% of the units under construction have already been sold.

But next year doesn’t look as good, with only 732 apartments expected to be finished. This shows that the supply problems pointed out in the Urbis Perth Apartment Essentials report are still a big deal.

In A Nutshell

In Perth, the apartment market is dealing with lots of demand, not enough supply, and construction costs that are starting to stay the same. As developers and buyers adjust to these changes, the way the market works keeps changing, affecting how people will live in Perth in the future.

To get more such information on the Australian Housing market visit Our Articles . Have some queries. Schedule a consultation Call at 1300 GET LOAN with us today.

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