With media hype focusing on the supply of new dwellings, Ray White Group’s September research indicates that established dwelling market is showing signs of slowing despite growing sales volumes.
With media hype focusing on the supply of new dwellings, Ray White Group’s September research indicates that established dwelling market is showing signs of slowing despite growing sales volumes.
On a state by state basis, based on transaction values, sales markets showed moderate growth with the ACT recording the highest change (2.5%), NSW (1.9%), Vic (1.3%), QLD (0.3%), SA (0.3%), Tas (0.6%), WA (0.1%) and the NT (-2.2%). These figures demonstrate the national property market equalising with the eastern states slowing and the western states making up lost ground.
Despite this slowdown, nationally, the total volume of sales reached $467 billion (rolling 12 month basis) which is a $1.5 billion increase over the previous 12 month period.
Auction volumes increased by 2.1% over the previous 12 months indicating a continued enthusiasm and optimism by vendors. According to last weekend’s auction clearance rates, Sydney was the strongest performer recording an 82%, Melbourne 80%, Adelaide 77%, Canberra 66% and Brisbane 53%.
August saw the number of listings remain steady with national growth of 0.3%.
The flat nature of new listings and a growing volume of sales will likely add to the frustrations of buyers in relatively active markets such as Sydney and Melbourne where a lack of supply helps maintain strong property values.
The investment arm of the family owned Ray White Group, White & Partners, has this week sold a Western Australian shopping centre for a total of $94 million.
The Currambine Central shopping centre, about 30km north of Perth, has been purchased by ASXlisted Federation Centres (FDC).
“The sale comprised of $74 million plus an additional $20 million to fund the next stage of the development,” said George Ajaka, general manager of White & Partners.
“Pursuant to the sale to Federation Centres, White and Partners will deliver the final phase of redevelopment which incorporates a fresh food market of 3,000m² and the redevelopment of the Grand Cinema tenancy.”
Originally purchased by White and Partners in January 2008 for $52.5m, the firm has been developing the centre over the past five years.
“When we first purchased the centre, it had around 8,000m² of net lettable area. Since then we have added on Dan Murphys, significantly updated the facade and increased the area to nearly double its size,” Mr Ajaka explains.
A neighbourhood shopping centre in a growth corridor in Perth, White & Partners focussed on creating a community based centre with local boutique quality tenancies rather than a focus on nationals.
“We’ve created a lot of outdoor space and greenery along with adding a number of restaurants to create a fantastic entertainment environment.”
“Most shopping centres try to incorporate everything, whereas Currambine Central now has a specific focus on entertainment, convenience and on completion of the current development works, fresh food,” Mr Ajaka explains.
The complex is anchored by a Woolworths supermarket, Dan Murphys and 44 specialty retailers.
