Low stocks hit Wembley Downs

Wembley Downs and East Cannington both recorded a drop of 7.9 per cent in their median sales price, earning them the joint title of bottom-performing suburbs for the September quarter.

Wembley Downs’ decline was also reflected in the annual change in median price for one year, falling 5.5 per cent, while East Cannington’s annual median price has risen 3.6 per cent since the same time last year.

Wright Real Estate sales manager Matt McWaters attributed Wembley Downs’ lower median price, which now sits at $987,500, to low stock levels. “Certainly over the last quarter we have noticed a drop in sales, however, over the same period we also experienced very low levels of new stock coming to the market, ” he said.

“The volume of sales for the last quarter is the lowest we have experienced for quite some time. In particular, the number of homes sold over $1 million was extremely low.”

However, Mr McWaters said there had been an increase in the price of stock in the lower ranges, particularly for two and three-bedroom duplexes.

“We have seen recently an increased stock level in the marketplace and would anticipate a correction for the next quarter, ” he said.

Mr McWaters said Wembley Downs was a highly desirable address among families, with lots of new builds and renovated homes.

“People move to the suburb for the schools and the lifestyle that Wembley Downs has to offer, with most homes becoming tightly held, ” he said.

East Cannington’s median sales price is now $497,500. Its place in the bottom-performing suburb table for the September quarter comes less than a year after it was the top suburb for the December 2013 quarter, pushed up by lots of new development in the area.

Ray White Cannington principal and licensee Cameron Smart said buyers had not lost interest in East Cannington but were becoming savvier and not rushing into buying.

“The reduction of the stamp duty exemption threshold from $500,000 to $430,000 and easing of the rental market definitely had an impact on first-homebuyers and their decision-making, ” he said.

“They are no longer rushing to get in before the threshold decreases, and are not being forced into buying by increasing rents and lack of available rental properties as they were in the first six months of the year.”

Mr Smart said the fall in the median sales price for the quarter stemmed from fewer sales above the median, particularly of homes priced between $600,000 and $1.75 million.

“I think the biggest selling points (of East Cannington) are accessibility to Perth city, public transport, proximity to quality schooling and Curtin University, as well as having one of WA’s biggest shopping centre complexes on your doorstep (Westfield Carousel) and all the commercial and retail outlets that surround it.”

Mosman Park, which had a 7.7 per cent drop in its median price for the September quarter, came in third on the bottom-performing suburbs list, followed by Leederville (-5 per cent), North Fremantle (-4.8 per cent), Mt Claremont (-4.4 per cent), Alkimos (-4.3 per cent), Golden Bay (-4.1 per cent), Jindalee (-4.1 per cent) and Doubleview (-4 per cent).