Venture Into Valuation: Off-The-Plan Unit Pre-Purchase Checklist
Follow Sally’s journey across Australia as she looks at valuation topics and local market activity in our capital cities.
TODAY’S TOPIC: Off-the-plan unit pre-purchase checklist
Off-the-plan unit property purchases are quite popular with first time buyers and investors. With the increase in supply and demand in some capital cities, it is important to do your research before signing that sales contract.
Pre-purchase property checklist: A buyers guide to off-the-plan units
From a Valuer’s perspective, here are some common considerations that you should do your homework on before purchasing an off-the-plan unit:
- Proximity to services and amenities
- Oversupply or undersupply of units in the vicinity
- Noise pollution from main roads, trains, airports and flight paths
- Proximity to non complimentary developments and power lines
- Future loss of views – watch out for neighbouring developments
- If possible, look at previous developments they have completed
- If available, research past strata reports that the builder may have completed
- Consider the statutory warranty the builder must offer. State government provisions vary from state to state
- Where possible, research the quality of materials, contractors and suppliers the builder uses.
- Is the local property market up or down at the time of purchase?
- Research surrounding established properties and median sale prices in the local area
- If there are incentives or rebates offered as part of the sales contract, ensure you are not actually paying for them in the final price, it may be a marketing gimmick.
Do your research; make sure you get what you are paying for.
Keep in mind you will most likely be paying a premium for the preference of purchasing a brand new property, but as soon as the occupant moves in the “New” factor starts to diminish. Be sensible and really consider the value of the property as an established one.
This is only a small sample of considerations that we recommend you look at before purchase, please contact us if you would like to learn more about our property valuation and advisory services.
Local Property Market Update: Western Australia & Perth
Today we are in Western Australia, let’s look at the local property market in the Perth metropolitan area.
OVERVIEW: June 2015 Quarter
Statistics obtained from the Real Estate Institute of Western Australia indicate a continuing decline in the wider Perth Metropolitan market. Whilst the Perth Median house price plateaued between December 2013 and March 2015 at a level of $550,000 the influencing metrics of supply and demand have continually worsened.
There is an increasing volume of properties for sale being countered by declining sales numbers. The softening market conditions have resulted in extended marketing periods for Vendors and thus a higher level of price discounting is being witnessed. As a result there has been downward pressure on values which the June 2015 results indicate, with a median house price of $535,000.
Supply across all market sectors has increased though the greater market concern with regard to values are those areas which have experienced growth in 2014. Such areas are those more attractive to first home buyers and investors and thus below a level of $700,000. Whilst the higher value areas are also experiencing soft market conditions it is interesting to reflect that such sectors have experienced little growth since the Global Financial Crisis.
SUMMARY: Metro Residential Sales
Perth’s median house price for the June 2015 quarter was recorded at $535,000. This showed a 2.73% decrease in median price for metropolitan Perth over the last quarter and a 1.84% decrease from the same period last year.
| Time Period | Median House Price | No. of House Sales | |
|---|---|---|---|
| June 2015 Quarter | $535,000 | 5810 | |
| March 2015 Quarter | $550,000 | 7042 | |
| December 2014 Quarter | $551,500 | 6936 | |
| September 2014 Quarter | $550,000 | 7417 |
*Data sourced from Real Estate Institute of Western Australia (REIWA).
If you would like to find out more about our property advisory and valuation services in the Perth metro area and regional Western Australia, please contact our local team.
