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UDIA Urban Inteligence Report (WA)

Discussion in 'Property Market Economics' started by theperthurbanist, 15th Aug, 2016.

  1. theperthurbanist

    theperthurbanist Well-Known Member

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    UDIA has just released its Urban Intelligence Report for the month. The reports look at key trends in the residential property market and broader economy in WA. I will try and keep this thread updated with the 'key points' of each report as they're released.
     
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  2. theperthurbanist

    theperthurbanist Well-Known Member

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    July Urban Intelligence Report:

    Key Points:
    Highlights from the July data include:

    Economy

    In WA the unemployment rate for June decreased 20 basis points from May and year-on-year (YOY) to sit at 5.6% (original data), with the seasonally-adjusted rate also decreasing a marginal 10 basis points to sit at 5.7%. The number of employed persons also declined 1.2% month-on-month (MOM) and 0.6% YOY to sit at 1.425m.

    Residential Property Market

    Finance commitments for first-homebuyers (FHB) in May increased 2.8% MOM, but fell 15.5% YOY to sit at 1,291 (monthly), with the average loan size decreasing 1.7% MOM to $314,500. Non-FHB finance commitments went up 7.5% MOM and 3.9% YOY to 5,522 (monthly), with the average loan size falling 3.1% to sit at $324,900.

    Residential Construction Sector

    The value of construction jobs in WA decreased 6.2% over the June quarter to sit at $1,567m. Of this total, new construction jobs fell 6.8% and alterations & additions decreased a marginal 0.3% from the March quarter.
     
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  3. theperthurbanist

    theperthurbanist Well-Known Member

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    And for a bit of context here were the June report highlights:
    June Urban Intelligence Report


    Key highlights include:

    • Lots sold in Greater Perth in the June-16 quarter decreased 4.2% from March. Lot sizes increased 2.8% to 391 sqm, the first increase since the March-15 quarter; and average prices decreased a marginal 2.6% from the last quarter to sit at $237,373.
    • The North-West corridor held the highest market share of Greater Perth sales at 28.8%, however it was the South-West corridor which increased the most in market share, from 16.4% in March-16 to 24.6% this quarter.
    • Indications of stabilisation in the Perth metropolitan region are emerging, with lots on the market increasing a marginal 1.9% in the June-16 quarter and lots to be released within 12 months averaging approximately 3,500 over the last three quarters.
     
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  4. theperthurbanist

    theperthurbanist Well-Known Member

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    August Urban Intelligence Report:

    Key Points:

    Highlights from the August data include:

    Economy

    • The August owner-occupier mortgage rates reduced due to the RBA’s cash rate cut of 25 basis points to 1.5%; with standard variable, discounted variable and 3-year fixed housing loans all decreasing 15 basis points over the month to sit at 5.25%, 4.45% and 4.10% respectively.
    Residential Property Market

    • WA dwelling finance commitments for investment housing in the June quarter increased 2.8% quarter-on-quarter (QoQ) to sit at $2,365.6 million. National commitments for the June quarter also increased 23.7% QoQ to sit at $37,063.6 million, following a 12.8% QoQ decrease in March.
    Residential Construction Sector

    • Greater Perth building approvals for houses in July (1,144) increased 11.7% month-on-month, sitting 8.2% below the ten-year monthly average of 1,246. Building approvals for dwellings excluding houses (673) increased 14.5% from the same time last year and sat slightly above the 24 month average of 645 per month.
     
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  5. theperthurbanist

    theperthurbanist Well-Known Member

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    Supply increasing, though I'm not seeing any drivers for increased demand. Somewhat concerning for prices?
     
  6. theperthurbanist

    theperthurbanist Well-Known Member

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    October Urban Intelligence Report:

    Highlights from the September data include:


    • In August the WA unemployment rate decreased 20 basis points from July to sit at 6.2%, 30 basis points higher than at the same time last year. The number of employed persons in WA decreased 1.5% month-on-month (MoM) and year-on-year (YoY) to rest at 1.42 million.
    • In July, the number of WA first home buyer (FHB) dwelling finance commitments decreased 3.9% MoM to sit at 1,256; whilst the average loan size experienced a 1.3% monthly increase to sit at $317,700, 5.8% lower than the same time last year. Non-FHBs also had lower dwelling finance commitment numbers, down 7.2% MoM to 4,885, with the average loan size decreasing a more marginal 0.2% to $330,400.
    • In August the number of WA building approvals for houses increased 5.5% from July to sit at 1,431, 9.8% lower than the ten-year monthly average. In Greater Perth housing building approvals increased 6.0% MoM to 1,222. Building approvals for dwellings excluding houses sat at 333 for WA, 29.5% below the ten year average (472); and 312 for Greater Perth, 24.3% below the ten year average (412).
     
  7. theperthurbanist

    theperthurbanist Well-Known Member

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    The September edition of the UDIA WA Urban Development Index is now available.

    Key highlights include:

    • Greater Perth recorded an increase of 6.6% in land sales activity over the September 2016 quarter, despite continued soft market conditions. However, this figure remains 11.5% lower than the same quarter last year.
    • The average lot size in Greater Perth fell 2.0% to 384 sqm, 4.5% lower than the same time last year.
    • Whilst average lot prices in Greater Perth have decreased 5.1% since the same time 12 months ago to sit at $226,113; rates per square metre have fallen a marginal 0.2% to $595 per sqm.
    • Future lot production increased 7.5% following three quarters of relatively stable lower figures, but remains 24.6% lower than in the September 2015 quarter.
     
  8. theperthurbanist

    theperthurbanist Well-Known Member

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    Interesting to see per square meter lot price rates remaining relatively stable.
     
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  9. Shankiedoodle

    Shankiedoodle Well-Known Member

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    so prices aren't shrinking but lots are?