December Quarter 2010 - Western Australian Planning Commission

March 2011 

December Quarter 2010

Department of Planning – December Quarter 2010 

CONTENTS 

December quarter 2010 contains: 

Data for Release date and 

period: 

comments 

Page 

SUMMARY AND KEY FACTS 1 

HOUSING ACTIVITY 

Housing Finance 

(Source: ABS) 

December 2010 14 February 2011 

3 

Dwelling Units Approved 

(Source: ABS) 

Dwellings Under Construction 

(Source: ABS) 

LAND AND HOUSING SALES 

ACTIVITY 

Lots Sold and Prices 

(Source: VGO) 

Lot Median and Lower Quartile Sale 

Price 

(Source: VGO) 

Dwelling Sales and Prices 

(Source: VGO) 

Dwelling Median and Lower Quartile 

Sale Price 

(Source: VGO) 

RENTAL ACTIVITY 

Median Rent and Vacancy Rate 

(Source: REIWA) 

RESIDENTIAL SUBDIVISION 

ACTIVITY 

Applications received 

(Source: DoP) 

Applications & lots awaiting decision 

(Source: DoP) 

Conditional Approvals 

(Source: DoP) 

Developers' stock of current 

conditional approvals 

(Source: DoP) 

Active Lots 

(Source: WaterCorporation) 

Final Approvals 

(Source: DoP) 

Prepared by Research, Department of Planning 

Email: research@planning.wa.gov.au 

December Qtr 

2010 

September Qtr 
























3 February 2011 4 

20 January 2011. 

December Qtr 2010 

expected release 

19 April 2011 

24 February 2011 

The contract date of sale 

event is after settlement 

8 

resulting in the recent 

quarters being incomplete 

and preliminary. 

9 

Revisions to this statistic 

will appear in subsequent 

issues, 10 

March 2011 11 

March 2011 12 

March 2011 14 

March 2011 15 

March 2011 16 

Customised monthly data 17 

March 2011 18 

6 

7 

i


Metropolitan Perth and Peel (Mandurah, Murray) 

Land Development Flow 

Developers control 

flow by lodging 

applications to 

subdivide in response 

to market conditions. 

18,400ha stock of undeveloped 

Urban zoned land at end of 2009. 

Assuming historical consumption 

trends results in 

21 years of land supply. 

(Source: Urban Growth Monitor (DoP, August 2010) 

1,472 lots in applications received 

during Dec Qtr 2010. 

Is three times the urban 

developed area of Greater 

Bunbury. 

Is 20 percent of all land 

zoned urban in the Perth 

Metropolitan region. 

Is equivalent to the number of lots 

In the suburb of Yanchep 

392 more lots 

than the City of 

South Perth 

Stock of 10,688 lots in 

Applications under 

assessment 

Dec Qtr 2010 

5,128 lots given Conditional 

Approval during Dec Qtr 2010. 

WAPC / DoP under 

statutory timeframes 

assess applications 

jointly with referral 

authorities 

Is the equivalent to the number of lots in the 

suburb of Duncraig. 

Developers in 

response to market 

conditions control 

flow by constructing 

lots in accordance 

with conditions 

Developers clear 

conditions and 

lodge a final 

diagram of survey 

with WAPC 

Stock of 51,358 conditionally 

approved lots for Developers 

to construct within 4 years 

in accordance with conditions 

as at December 2010. 

11,400 lots were deemed as Active lots 

proceeding to construction where 

clearance of conditions were initiated 

with WaterCorporation, December 2010. 

WAPC / DoP under statute 

grant Final Approval to lots 

constructed in accordance 

with conditions. 

Is almost the same as the 

whole of the City of Joondalup. 

Approximately equivalent to the 

number of lots in the 

City of Belmont 

3,298 lots given Final 

Approval during 

Dec Qtr 2010 

Approximately the same lot count as the suburb of Balga 

In response to market conditions 

Developer provides lots to market 

for sale and for housing construction. 

ii


SUMMARY AND KEY FACTS 

Housing Market and the Economy 

The outlook for the Western Australian economy appears positive with the Chinese economy, a major 

driver of growth in the State, growing by approximately 10% per annum over 2010 1 . Solid demand for 

minerals and other resources, mainly from China and India, will continue to be the key driver of growth 

and income in WA and Australia throughout 2010-11 and at least for most of the next decade with a 

number of new mining projects such as the Gorgon gas project and BHP Billiton’s iron ore expansions 

going ahead. Consequently, employment in WA increased over the past year, with the seasonally 

adjusted unemployment rate remaining below 5% since the beginning of 2010 2 . 

Although there has been some increase in dwelling approvals in 2009/10 over 2008/09, demand for 

housing remains subdued. The median dwelling price had a succession of increases from the 

December quarter 2008 until March quarter 2010 across the entire State. It has subsequently fallen in 

each quarter until the present time in the Metro/Peel 3 Region, with the remainder of the State also 

displaying a negative trend but with some stabilisation in the current quarter. The preliminary median 

price for the Perth/Peel Region in the December quarter 2010 is $475,000 while for Regional WA it is 

$380,000. 

In terms of land release over the previous financial year, final residential lot approvals decreased by 

about 900 lots to 8,371 lots in the Perth/Peel Region. Declines in final residential lot approvals in 

country regions were almost of the same magnitude (960) but relative decline was much higher, being 

27% over the previous financial year, 2008/09. 

The property market contracted in the last three years. Although some growth in residential 

construction is forecast for the next two years, the consequences of poor housing affordability 

(substantially reduced disposable income and consumption level of first homebuyers due to high 

housing costs) may become more manifest especially if accompanied by declining immigration levels. 

Housing Activity 

• The December quarter 2010 figure of 5,793 housing loans for owner-occupied dwellings in WA 

continues a small upward trend that has been occurring over the last six months but is still only 

consistent with loan numbers last seen in 2000. 

• Dwelling approval numbers rose slightly in the December quarters 2010 and totalled 5,503 

overall. When considering the components of this total, the number of approvals for houses 

dropped between the September (4,658) and December (4,427) quarter but approvals for other 

dwelling types rose from 812 to 1,076. Total approvals for Perth/Peel dropped from 4,202 to 

4,187 over the quarter but the rest of WA saw an increase from 1,268 to 1,316. 

• By the end of the September quarter 2010, the number of dwellings under construction in 

WA had decreased by almost 400 to 18,493 over the end of June quarter which ended the 

upward trend experienced in the previous three quarters. 

1 

Source – Reserve Bank of Australia, Statement on Monetary Policy (February 2011). 

2 

Source – Australian Bureau of Statistics, Labour Force Australia (Cat 6202.0 February 2011). 

3 Metro/Peel Region is defined as the Perth Metropolitan Region and the local authorities of Mandurah and Murray. 

1


Land and Housing Sales Activity 

• Lot Sales and Prices 

The December quarter 2010 continued the downward trend in the number of lot sales that 

started in December 2009. A total of 1,237 sales were made during the most recent quarter. 

Median lot prices in WA increased during the 2009/2010 financial year with the preliminary 

median vacant lot sales price in the Metro/Peel Region and remainder of the State reported as 

$245,344 and $170,000, respectively, for the current quarter December 2010. 

• Dwelling Sales and Prices 

Sales of established dwellings in WA have declined for five quarters in succession, with 7,238 

sales reported in the December quarter 2010. The median dwelling price for the State 

($460,000, preliminary figure) is approximately equal to the figure reported for the December 

quarter 2009. 

Rental Activity 

• The vacancy rate in Metropolitan Perth has tightened in the previous year, falling to 3.2% in the 

December quarter 2010 from 4.7% in the December quarter 2009. 

• Rents in Perth remained flat over the last year and the preliminary figure for the overall median 

weekly rent remained unchanged at $370. 

Residential Subdivision Activity 

• Applications Received 

Applications lodged across WA rose by 10 percent over the previous quarter to 658 applications 

during the December quarter 2010. The December quarter also witnessed a 70% increase in 

the number of residential lots proposed in the State over the previous quarter, with the total 

number of lots equal to 8,971. 

• Applications and lots awaiting decision 

Total number of applications under assessment in WA at the end of the December quarter 2010 

was 617 – a 2.7% percent decrease on the previous quarter. The number of residential lots in 

applications under assessment across the State totalled 14,213 at the end of the December 

quarter – this was 13 percent higher than the previous quarter. 

• Conditional Approvals 

Conditional approvals were granted to 6,962 residential lots in WA during the December quarter 

2010. Total conditional approvals were just above the five year average for the December 

quarter and 7% lower than in the previous quarter. 

• Stock of Lots Available for Development 

By the end of the December quarter 2010, the developer’s stock of conditionally approved 

residential lots totalled 76,816 – about 700 more than in the previous quarter. 

• Active Lots 

Based on Water Corporation data for the Metro/Peel Region, approximately 11,400 residential 

lots were considered as actively progressing to Final Approval in December 2010. Country WA 

had 2,600 such lots. 

• Final Approvals 

3,298 lots were given final approval in Metro Perth/Peel in December 2010 quarter which was 

almost 1,000 more than in the previous quarter. In country areas approvals dropped marginally 

to 389. 

2


HOUSING ACTIVITY 

Housing finance 

Figure 1 

Housing loans for owner-occupied dwellings, Western Australia, seasonally adjusted 

Scope 

Housing finance 

commitments made 

by significant 

lenders for the 

construction or 

purchase of owner 

occupied dwellings. 

Seasonally adjusted 

data 

Source 

Housing Finance, 

Australia, ABS Cat. 

No. 5609.0 Table 5. 

December 2010. 

Number of housing 

finance commitments 

11,000 

10,000 

9,000 

8,000 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

Dec-05 

Jan-06 

Feb-06 

Mar-06 

Apr-06 

May-06 

Jun-06 

Jul-06 

Aug-06 

Sep-06 

Oct-06 

Nov-06 

Dec-06 

Jan-07 

Feb-07 

Mar-07 

Apr-07 

May-07 

Jun-07 

Jul-07 

Aug-07 

Sep-07 

Oct-07 

Nov-07 

Dec-07 

Jan-08 

Feb-08 

Mar-08 

Apr-08 

May-08 

Jun-08 

Jul-08 

Aug-08 

Sep-08 

Oct-08 

Nov-08 

Dec-08 

Jan-09 

Feb-09 

Mar-09 

Apr-09 

May-09 

Jun-09 

Jul-09 

Aug-09 

Sep-09 

Oct-09 

Nov-09 

Dec-09 

Jan-10 

Feb-10 

Mar-10 

Apr-10 

May-10 

Jun-10 

Jul-10 

Aug-10 

Sep-10 

Oct-10 

Nov-10 

Dec-10 

Month 

Table 1 

Housing loans* for owner occupied dwellings – annual summary and monthly comparison 

Western Australia, seasonally adjusted 

Five 

year 

average 

Five year 

average 

for Dec 

2005/ 2006/ 2007/ 2008/ 2009/ 

Dec Dec 

2006 2007 2008 2009 2010 

2009 2010 

Number 106,661 104,967 92,828 81,900 78,873 93,046 6,845 5,793 7,147 

Annual 

change 

-1.59 -11.6 -11.8 -3.7 -15.4 

*Note: 

Source: 

Housing loans are housing finance commitments made by significant lenders. Includes secured finance commitments for the construction or purchase of 

owner occupied dwellings 

Based on data from Housing Finance Australia, Australian Bureau of Statistics Cat. No. 5609.0, Table 5. December 2010. Recent data is revised. 

Seasonally adjusted housing finance commitments in Western Australia have decreased by 15.4% 

over the last 12 months to December 2010. The five year annual trend in the State’s housing finance 

commitments continues to decline but the rate of decline has slowed. It appears that commitment 

numbers have passed the minimum point in the current cycle and a small growth trend is likely to 

continue in the immediate future. However, the most recent RBA Monetary Policy Statement 4 

indicated that the household sector was still displaying considerable caution in spending and 

borrowing and there is an expectation that this caution will restrain activity in this area. 

4 Source – Reserve Bank of Australia, Statement on Monetary Policy (February 2011) 

3


Dwelling units approved 

Figure 2 

Dwelling units approved per quarter 

6000 

Scope 

New houses and 

other new 5000 

residential 

buildings. Exc. 

alterations, 4000 

additions and 

conversions to 

residential. 

3000 

Source 

Building Approvals 

Australia 

2000 

ABS Cat.No. 

8731.0. February 

2011. 

1000 

Dwelling units 

HOUSES 

UNITS 

0 

Dec- 

05 

Mar- 

06 

Jun- 

06 

Sep- 

06 

Dec- 

06 

Mar- 

07 

Jun- 

07 

Sep- 

07 

Dec- 

07 

Mar- 

08 

Rest of WA 1300 1086 1160 1268 1187 1071 1112 1138 1035 981 1115 1218 932 780 1132 1231 1318 1178 1234 1101 1099 

Metro/Peel 4292 4149 4491 4199 3973 3197 3492 3417 3358 2810 3232 3186 2897 2511 3301 4082 3956 3666 3710 3557 3328 

Rest of WA 112 67 219 126 195 182 254 181 188 82 150 188 197 64 106 232 196 286 282 167 217 

Metro/Peel 892 714 977 1678 989 652 1298 980 1209 1418 952 1067 412 657 621 535 838 1827 746 645 859 

Jun- 

08 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun- 

09 

Sep- 

09 

Dec- 

09 

Mar- 

10 

Jun- 

10 

Sep- 

10 

Dec- 

10 

Note: 

Metro/Peel includes the Perth Metropolitan Region plus the City of Mandurah and the Shire of Murray in the Peel Region. 

Table 2 

Dwelling units approved – annual summary and quarterly comparison 

2005/ 

2006 

2006/ 

2007 

2007/ 

2008 

2008/ 

2009 

2009/ 


Five 

year 

average 

Dec 

Qtr 

2009 

Dec 

Qtr 


Five year 

average 

for Dec 

Qtr 2 

Houses 

Metro/Peel 1 16,855 14,861 12,817 11,895 15,414 14,368 3,956 3,328 3,502 

Rest of WA 4,914 4,638 4,269 4,062 4,961 4,569 1,318 1,099 1,114 

WA 21,769 19,499 17,086 15,957 20,375 18,937 5,274 4,427 4,616 

Units & Other 

Metro/Peel 1 3,341 4,617 4,559 2,757 3,946 3,844 838 859 861 

Rest of WA 545 757 601 555 996 691 196 217 199 

WA 3,886 5,374 5,160 3,312 4942 4,535 1,034 1,076 1,060 

Total Dwelling Units 

Metro/Peel 1 20,196 19,478 17,376 14,652 19,360 18,212 4,794 4,187 4,363 

Rest of WA 5,459 5,395 4,870 4,617 5,957 5,260 1,514 1,316 1,313 

WA 25,655 24,873 22,246 19,269 25,317 23,472 6,308 5,503 5,676 

Note: 1. Metro/Peel includes the Perth Metropolitan Region plus the City of Mandurah and the Shire of Murray in the Peel Region. 

2. Average of five December quarters – December 2006, December 2007, December 2008, December 2009 and December 2010. 

3. Dwelling units include houses, units and other residential buildings. Excludes conversions and dwelling units approved as part of alterations and additions or 

the construction of non-residential buildings. 

Source: Building Approvals Australia, Australian Bureau of Statistics Cat. No. 8731.0. February 2010. 

4


The 2009/2010 financial year witnessed a significant improvement in State-wide building approvals. 

During this period, the total number of dwelling units (houses plus units) granted approval in W.A. was 

up 31% on the previous financial year and 7% above the five year average for the State. 

When considering quarter by quarter comparisons, the December 2010 figures indicate a 16% drop in 

house approvals from December 2009, with the reduction in approvals occurring in both Perth/Peel 

and the country. Total unit and other approvals were relatively stable over this period. The high 

proportion of house approvals in the total numbers and the reduction in house approval numbers 

contributed to the 13% reduction in overall approvals between the two quarters. 

5


Dwellings under construction 

Figure 3 

Dwelling units under construction at the end of the quarter, Western Australia 

Dwelling units under construction 

Scope 

Houses and 

units within 

other 

residential 

buildings. 

Excludes 

alterations/ 

additions and 

conversions. 

All sectors and 

types of 

owners. 

Source 

Building 

Activity 

Australia, ABS 

Cat. No. 

8752.0. Table 

77. January 

2011. 

25000 

20000 

15000 

10000 

5000 

0 

Sep- Dec- Mar- 

2005 2005 2006 

Jun- 

2006 


2006 2006 2007 

Jun- 

2007 


2007 2007 2008 

Other residential 5059 4836 4862 5577 6191 6514 6705 6440 6520 6318 6963 7244 7989 7161 6856 5839 5063 4493 5119 6045 6145 

Houses 14568 14957 15715 16176 16798 16520 16646 15057 14323 13623 13344 13145 12611 11481 11671 10737 11010 11338 12675 12837 12348 

Jun- 

2008 


2008 2008 2009 

Jun- 

2009 


2009 2009 2010 

Jun- 


Sep- 


Dec- 


Note: Data for December quarter 2010 is not yet available. Data for the most recent quarters are revised. 

Table 3 

Dwelling units under construction, Western Australia – quarterly comparison and summary 

Sept 

Qtr 

2006 

Sept 

Qtr 

2007 

Sept 

Qtr 

2008 

Sept 

Qtr 

2009 

Sept 

Qtr 


Five year 

average for 

Sept Qtr 3 

At the end of the 

quarter 

Houses 1 16,798 14,323 12,611 11,010 12,348 13,418 

Other residential 

buildings 2 6,191 6,520 7,989 5,053 6,145 6,382 

Total 22,989 20,843 20,600 16,073 18,493 19,800 

Note: 

Source: 

1. Houses are defined as a detached building predominantly used for long-term residential purposes and consisting of only one dwelling unit. 

2. Other residential buildings are defined as a building other than a house primarily used for long-term residential purposes and which contains (or has 

attached to it) more than one dwelling unit (e.g. includes blocks of flats , home units, attached townhouses, villa units, terrace houses, semidetached 

houses, maisonettes, duplexes, apartment buildings, etc. 

3. Average of five September quarters – September 2006, September 2007, September 2008, September 2009 and September 2010. 

Based on data from Building Activity Australia, Table 77. Australian Bureau of Statistics Cat. No. 8752.0, January 2011. Note that data for recent 

quarters is subject to revision at a future date. 

During the September quarter 2010 the number of dwellings under construction decreased by two 

percent to 18,493. Houses under construction decreased by 3.8 percent to 12,348, while other 

residential buildings under construction increased by 1.7 percent to 6,145. Comparing the September 

quarter 2010 to the September quarter 2009, dwellings under construction increased by 15 percent. In 

the September quarter 2010, houses comprised 67 percent of total dwellings under construction. 

6


LAND AND HOUSING SALES ACTIVITY 

Lots sold and prices 

Figure 4 

Vacant residential lot sales and median sale price during the quarter 

S cope 

Vacant lots of all sizes 

with residential zoning 

Excludes multi-lot, 

related party and 

institutional sales 

Median price ($) 

275,000 

250,000 

225,000 

200,000 

Lots sold 

8,000 

7,000 

6,000 

Source 

Valuer General's 

database, Landgate 

Note 

Date of sale is the 

contract date recorded 

in the database after 

settlement. Recent 

quarters especially the 

last two quarters are 

incomplete due to this 

lag. 

175,000 

150,000 

125,000 

100,000 

75,000 

50,000 

25,000 

0 

Dec- 

05 

Mar- 

06 

Jun- 

06 

Sep- 

06 

Dec- 

06 

Mar- 

07 

Jun- 

07 

Sep- 

07 

Dec- 

07 

Mar- 

08 

Jun- 

08 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun- 

09 

Sep- 

09 

Dec- 

09 

Mar- 

10 

Jun- 

10 

Sep- 

10 

Dec- 

10 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

Sales - Metro/Peel 

Median price - Metro/Peel 

Median price - WA 

Sales - Rest of WA 

Median price - Rest of WA 

Note: Metro/Peel includes the Perth Metropolitan Region plus the City of Mandurah and the Shire of Murray in the Peel Region. 

Source: Valuer General’s database, Valuation Services, Landgate. Data for December 2008 to December 2010 updated on 24 February 2011. 

Table 4 

Vacant residential lot sales – annual summary and quarterly comparison 

2005/ 

2006 

2006/ 

2007 

2007/ 

2008 

2008/ 

2009 

2009/ 


Five 

year 

average 

Dec 

Qtr 

2009 

Five year 

Dec average 

Qtr for Dec 

2010 2 Qtr 3 

Metro/Peel 1 19,684 11,628 7,536 10,090 13,087 12,405 3,387 848 2,201 

Rest of WA 7,360 5,323 3,406 3,097 3,945 4,626 1,024 389 803 

WA 27,044 16,951 10,942 13,187 17,032 17,031 4,411 1,237 3,003 


2. Date of sale is the contract date recorded in the database after settlement. Recent quarters are incomplete due to this lag. 


4. Residential lots are those with residential zoning under a local planning scheme. 

Source: Valuer General’s database, Valuation Services, Landgate. Data for December 2008 to December 2010 updated on 24 February 2011 

Recent trends are difficult to measure because the data may not be complete for many months. When 

a property is sold, the recorded date of sale is the contract date. However this information is not 

available until after settlement which may happen much later. For this reason data for recent quarters 

is only indicative. Figure 4 provides some evidence of a slight upward trend in median land prices from 

mid 2009 with this effect being more pronounced in Perth/Peel than in country WA. The number of lot 

sales has been falling steadily since the September 2009 quarter. 

7


Lot median and lower quartile sale price 

Figure 5 

Vacant residential median and lower quartile lot sale prices 

Scope 

Vacant lots of all 

sizes with residential 

zoning 

Excludes multi-lot, 

related party and 

institutional sales 

Price ($) 

300,000 

250,000 

Source 


database, Landgate 

(as at 7 December 

2010) 

200,000 

Note 

Date of sale is the 

contract date 

recorded in the 

database after 

settlement. Recent 

quarters especially 

the last two quarters 

incomplete due to 

this lag 

150,000 

100,000 

50,000 

0 

Dec- 

05 

Mar- 

06 

Jun- 

06 

Sep- 

06 

Dec- 

06 

Mar- 

07 

Jun- 

07 

Sep- 

07 

Dec- 

07 

Mar- 

08 

Jun- 

08 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun- 

09 

Sep- 

09 

Dec- 

09 

Mar- 

10 

Jun- 

10 

Sep- 

10 

Dec- 

10 

Low er Quartile - Metro/Peel 

Low er Quartile - Rest of WA 

Median - Metro/Peel 

Median - Rest of WA 



Table 5 

Residential lot prices ($) – annual summary and quarterly comparison 

Dec Qtr 

2005 

Dec Qtr 

2006 

Dec Qtr 

2007 

Dec Qtr 

2008 

Dec Qtr 

2009 

Dec Qtr 


Metro/Peel 1 Median 160,000 250,000 264,000 220,000 235,000 245,344 

Lower quartile 135,000 206,000 220,500 195,000 181,500 185,000 

Rest of WA 

Median 125,300 167,500 180,000 150,000 165,000 170,000 


Total WA 

Median 152,000 231,000 250,000 215,000 220,000 223,687 


Note: 

Source: 

1. Metro/Peel includes the Perth Metropolitan Region plus the City of Mandurah and the Shire of Murray in the Peel Region. 


Valuer General’s database, Valuation Services. 

The graph above illustrates the median and lower quartile vacant lot sale prices. Median prices in both 

the Metro/Peel Region and the remainder of the State have displayed a slight upward trend since 

early/mid 2009 after a year of decline, with country WA lagging approximately a period behind 

Perth/Peel. The preliminary median vacant lot sales prices in the Metro/Peel Region and Rest of WA 

were reported as $245,344 and $170,000, respectively, for the December 2010 quarter. The lower 

quartile price has followed a fairly flat trajectory in both Perth/Peel and country WA. This has been 

occurring for approximately two years in country WA, while in Perth/Peel it has come after a period of 

downward trend from December 2007. 

8

P 

37,620 

P 

14,789 

P 

52,409 


Dwelling sales and prices 

Figure 6 

Dwelling sales and median sale price during the quarter 

Scope 

Houses plus units 

and other 

residential type 

properties. 

Excludes multilot, 

related party 

and institutional 

sales 

Median Price ($) 

600,000 

500,000 

400,000 

Number sold 

18,000 

16,000 

14,000 

12,000 

Source 


database, 

Landgate 

300,000 

10,000 

8,000 

Note 

200,000 

6,000 

Date of sale is 

the contract 

date. Recorded in 

the database 

after settlement. 

Recent quarters 

especially the last 

two quarters are 

incomplete due to 

this lag 

100,000 

0 

Dec- 

05 

Mar- 

06 

Jun - 

06 

Sep - 

06 

Dec- 

06 

Mar- 

07 

Jun - 

07 

Sep- 

07 

Dec- 

07 

Mar- 

08 

Sales - Metro/Peel 

Jun - 

08 


Median price - WA 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun - 

09 

Sep- 

09 

Dec- 

09 

Mar - 

10 

Sales - Rest of WA 

Jun - 

10 


Sep - 

10 

Dec - 

10 

4,000 

2,000 

0 



Table 6 

Dwelling sales – annual summary and quarterly comparison 

2005/ 

2006 

2006/ 

2007 

2007/ 

2008 

2008/ 

2009 

2009/ 


Five 

year 

average 

Dec 

Qtr 

2009 

Dec 

Qtr 


Five year 

average for 

Dec Qtr 3 

Houses 

1 

Metro/PeelP 

25,881 21,178 23,606 25,560 26,769 6,400 4,057 5,273 

Rest of WA 12,001 9,093 6,856 5,973 6,378 8,060 1,664 983 1,579 

WA 49,621 34,974 28,034 29,579 31,938 34,829 8,064 5,040 6,851 

Units & Other 

1 

Metro/PeelP 

11,774 9,251 10,558 12,016 11,678 3,034 1,932 2,395 

Rest of WA 1,841 1,448 1,154 995 1,066 1,301 291 146 246 

WA 16,630 13,222 10,405 11,553 13,082 12,978 3,325 2,078 2,641 

Total 

1 

Metro/PeelP 

37,545 30,339 34,204 37,632 38,426 9,421 6,059 7,683 

Rest of WA 13,842 10,902 8,282 7,135 7,698 9,572 2,033 1,179 1,880 

WA 66,251 48,447 38,621 41,339 45,330 47,998 11,454 7,238 9,563 




4. Residential lots are those with residential zoning under a local planning scheme. 


Sales of established dwellings in WA have declined since September 2009, with the December 2010 

quarter having the lowest figure in the five year period displayed in Figure 6. The Metro/Peel Region 

median price for the December quarter 2010 is $475,000 which is basically equivalent to the previous 

December quarter figure. Prices in Regional WA have stabilised in the last year with a median price of 

$380,000 recorded in the December quarters of 2009 and 2010. Recent quarters’ figures should be 

used with care as they are preliminary. 

9

326,000 


Dwelling median and lower quartile sale price 

Figure 7 

Dwelling median and lower quartile sale price 

Scope 

Vacant lots of 

all sizes with 

residential 

zoning 

Excludes multilot, 

related 

party and 

institutional 

sales 

Source 

Valuer 

General's 

database, 

Landgate 

Price ($) 

600,000 

550,000 

500,000 

450,000 

400,000 

350,000 

300,000 

250,000 

Note 

200,000 

Date of sale is 

the contract 

date. Recorded 

in the 

database after 

settlement. 

Recent 

quarters 

expecially the 

last two 

quarters 

150,000 

100,000 

50,000 

0 

Dec- 

05 

Mar- 

06 

Jun - 

06 

Sep - 

06 

Dec- 

06 

Mar- 

07 

Jun - 

07 

Sep- 

07 

Dec- 

07 

Mar- 

08 


Jun - 

08 

Low er quartile price - Metro/Peel 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun - 

09 

Sep- 

09 

Dec- 

09 

Mar - 

10 


Jun - 

10 

Low er quartile price - Rest of WA 

Sep - 

10 

Dec - 

10 



Table 7 

Dwelling prices – annual summary and quarterly comparison 

Dec Qtr 

2005 

Dec Qtr 

2006 

Dec Qtr 

2007 

Dec Qtr 

2008 

Dec Qtr 

2009 

Dec Qtr 


Metro/Peel 1 

Median 440,000 465,000 410,000 476,000 475,000 


Rest of WA 

Median 240,000 330,000 360,000 335,000 380,000 380,000 


WA 

Median 312,000 418,000 445,000 400,000 462,000 460,000 





Median prices in Perth/Peel and country WA have generally trended upwards in the five year period 

displayed in Figure 7 with occasional fluctuations, in particularly the low point in December 2008. As 

an approximate rule, median prices have increased on average by $5000 per quarter in Perth/Peel 

and $5,500 per quarter in country WA over the five year period. When considering short term trends, 

the data for 2010 shows median prices trending slightly downward in Perth/Peel while remaining 

reasonably constant across the rest of the State. 

10

T 


RENTAL ACTIVITY 

Median rent and vacancy rate 

Rental information is obtained from a survey of REIWA members who manage residential properties 

for rent. As such, it is assumed that public housing and rental properties not managed by REIWA 

members are excluded. 

Figure 8 

Median weekly rent and vacancy rate per quarter, Metropolitan Perth 

Vacancy rate (%) 

5.0 

Scope: 

All types of rental 4.5 

dwellings in 

4.0 

Metropolitan Perth 

managed by REIWA 3.5 

members 

3.0 

Source: 

Market Update, 2.5 

Real Estate 

Institute of 2.0 

Australia. March 

1.5 

2010. 

1.0 

0.5 

Median weekly rent ($) 

400 

360 

320 

280 

240 

200 

160 

120 

80 

40 

0.0 

Dec- 

05 

Mar- 

06 

Jun- 

06 

Sep- 

06 

Dec- 

06 

Mar- 

07 

Jun- 

07 

Sep- 

07 

Dec- 

07 

Vacancy rate (%) 1.6 1.4 1.8 1.8 1.0 0.8 2.1 2.5 1.6 1.4 2.8 2.6 2.4 2.9 3.5 4.6 4.7 4.6 4.3 3.4 3.2 

Median weekly rent ($) 220 230 240 250 260 270 290 300 320 330 350 350 360 360 360 360 370 370 370 370 370 

Mar- 

08 

Jun- 

08 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun- 

09 

Sep- 

09 

Dec- 

09 

Mar- 

10 

Jun- 

10 

Sep- 

10 

Dec- 

10 

0 

Table 8 

Median rent and vacancy rate, Perth Metropolitan Region – annual summary and quarterly 

update 

Dec Qtr Dec Qtr Dec Qtr Dec Qtr Dec Qtr Dec Qtr 

2005 2006 2007 2008 2009 2010 

Vacancy rate (%) 1.6 1.0 1.6 2.4 4.7 3.2 

Median weekly rent ($) 220 260 320 360 370 370 

Annual change (%) 18.2 23.1 12.5 2.8 0.0 

*Note: Data for December quarter 2010 is preliminary data and may be subject to revision at a future date. 

Source: Western Australia Real Estate Indicators – December Quarter 2010. Market Update, Real Estate Institute of Western Australia. March 2011. 

The vacancy rate declined slightly in the December quarter 2010 dropping to 3.2% from the 3.4% 

figure noted in the previous quarter. The vacancy rate has now declined for four consecutive quarters 

from a rate of 4.7% in the December quarter 2009. It is notable that approximately 18% of dwellings 

financed were for first home buyers as at December 2010 compared with over 25% as at December 

2009 5 , potentially indicating first home buyers are being forced into the rental market as home 

ownership becomes increasing unaffordable. The median weekly rent for the December quarter 2010 

was $370 and this level has remained constant since December 2009. 

5 Source – Australian Bureau of Statistics, Housing Finance Commitments (Cat. 5609.0 January 2011). 

11


RESIDENTIAL SUBDIVISION ACTIVITY 


Figure 9 

Residential subdivision applications and lots received during the quarter 


Scope 

Residential 

subdivision 

applications 

and lots 


Applications 

The December quarter 2010 saw 658 applications, a 10% increase on the previous quarter. Although 

there is random variation from quarter to quarter, total application numbers appear to be following an 

upward trend from the September 2009 quarter to the present time. It should be noted that much of 

this trend is driven by activity in the Perth/Peel Region as country applications have essentially 

remained constant since December 2008. 

Lots 

As with the applications, the December quarter 2010 witnessed a considerable increase in the number 

of residential lots proposed in WA. The figure for this quarter was 8,971, a 70% increase on the 

September quarter 2010. Since mid 2009, the lot number figures have followed a pattern of oscillating 

between approximately 5,000 and 9,000 lots in alternate quarters, which is particularly noticeable from 

Figure 9. 

13


Applications and lots awaiting decision 

Figure 10 

Stock of residential subdivision applications and lots awaiting decision at the end of the quarter 

Scope 

Residential 

subdivision 

applications and 

lots < 3,000m2 

therein subject to 

approval by the 

WAPC. Excludes 

built strata 

subdivisions 

subject to 

approval by local 

government. 

Source 

State Lot Activity, 

WAPC, March 

2011. 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

Applications pending 

Lots 

80,000 

70,000 

60,000 

50,000 

40,000 

30,000 

20,000 

200 

10,000 

0 

Dec- 

05 

Mar- 

06 

Jun- 

06 

Sep- 

06 

Dec- 

06 

Mar- 

07 

Jun- 

07 

Sep- 

07 

Dec- 

07 

Lots - Rest of WA 6933 6952 7151 8470 9936 8552 9877 10224 10294 9019 9402 9273 8269 7206 6769 2851 5922 5780 5001 3841 3525 

Lots - Metro/Peel 17769 15683 12109 11477 13043 14674 15616 13232 12450 11416 12604 12310 12370 9642 9479 3204 11356 10446 9983 8716 10688 

Applications - WA 981 940 1132 1189 1125 1097 1491 1013 1118 1181 1386 1116 940 769 708 328 710 714 668 634 617 

Applications - Rest of WA 240 259 339 394 363 336 418 310 337 374 379 311 261 216 207 100 151 133 120 118 115 

Applications - Metro/Peel 741 681 793 795 762 761 1073 703 781 807 1007 805 679 553 501 228 559 581 548 516 502 


Source: State Lot Activity, Western Australian Planning Commission, March 2011. 

Applications 

After the State’s applications awaiting decision spiked in the June quarter 2008, there was a 76 

percent fall in applications over the fifteen months up to the September quarter 2009 (Figure 10 - line 

chart, left hand axis). Although December quarter 2009 rebounded, the number of applications 

pending for the have gradually decreased over the following four quarters. The total number of 

applications under assessment in WA at the end of the December quarter 2010 was 617 - a 2.7 

percent decline on the previous quarter. 

Lots 

The number of residential lots in applications under assessment across the State totalled 14,213 at 

the end of the December quarter 2010 (Figure 10 – bar chart, right hand axis). This was a 13% 

increase on the previous quarter which offset the 13% drop between the previous two quarters. The 

number of lots under consideration decreased in the Metro/Peel area from December quarter 2009 to 

December quarter 2010. 

Mar- 

08 

Jun- 

08 

Sep- 

08 

Dec- 

08 

Mar- 

09 

Jun- 

09 

Sep- 

09 

Dec- 

09 

Mar- 

10 

Jun - 

10 

Sep- 

10 

Dec- 

10 

0 

14


Conditional approvals 

Conditional approvals issued by the Western Australian Planning Commission authorise developers to 

commence the servicing and construction of proposed subdivisions in accordance with conditions 

recommended by State government agencies, local governments and utility service providers. 

Figure 11 

Residential lots granted conditional approval during the quarter 

Scope: 

Residential 

lots 


Developers' stock of current conditional approvals 

Land developers have four years from the date of the conditional approval to submit an application for 

Final Approval with the WAPC. The stock of lots with conditional approval provides an estimate of lots 

available for development within four years of the approval date. These lots include those active lots 

under construction, where road works and utility servicing have commenced. 

In large subdivisions the conditional approvals may be the later stages of a large project where some 

lots have already proceeded to final approval. Lots with final approval in these applications are 

excluded from the stock figure, although the application itself is included in the count of applications. 

Figure 12 

Stock of residential applications and lots with conditional approval at the end of the quarter 

Applications 

8,000 

Stock of Lots 

80,000 

Scope 

Residential 

subdivision 

applications and 

lots


Active lots 

For subdivisions granted conditional approval Water Corporation data gives an indication of those 

which are being actively developed in preparation for the release of titles and building construction. 

The developer undertakes considerable professional investment to apply for a servicing agreement 

with WaterCorp that establishes a cost for the provision of water, sewerage and drainage services. 

This professional investment connotes a real intent to proceed with the construction of the subdivision. 

There is no obligation for the applicant to act on the agreement with some agreements never being 

progressed. Those agreements not acted on mainly comprise small residential developments (ones 

into twos and so on) where novice applicants are ill prepared. In greenfield locations most agreements 

are progressed with experienced developers prepared to meet the imposed conditions and costs. 

Caution must be used when interpreting the following statistics for active lots. They are for agreements 

that have been prepared by WaterCorp and the applicant is yet to finish the required works or pay the 

required fees. 

Figure 13 

Residential lots with servicing agreement with the Water Corporation 

Active Lots 

18,000 

16,000 

14,000 

12,000 

10,000 

8,000 

6,000 

4,000 

2,000 

0 

Dec- 

08 

Jan- 

09 

Feb- 

09 

Mar- 

09 

Apr- 

09 

May- 

09 

Jun- 

09 

Jul- 

09 

Aug- 

09 

Sep- 

09 

Oct- 

09 

Nov- 

09 

Rest of WA 4,700 4,400 4,300 4,000 4,000 3,500 3,300 3,500 3,400 3,300 3,400 3,300 3,300 3,200 3,300 3,300 3,400 3,100 3,000 3,000 2,800 2,800 2,700 2,500 2,600 

Metro/Peel 11,100 11,300 11,00010,60010,60010,90010,90010,900 11,100 10,40010,20010,100 10,000 10,100 10,70010,600 11,300 11,400 11,300 11,400 11,800 12,000 11,700 11,000 11,400 

Dec- 

09 

Jan- 

10 

Feb- 

10 

Mar- 

10 

Apr- 

10 

May- 

10 

Jun- 

10 

Jul- 

10 

Aug- 

10 

Sep- 

10 

Oct- 

10 

Nov- 

10 

Dec- 

10 

Source: 

Note: 

Water Corporation: 

1. The data presented here for the past two years in WA includes predominantly residential lots but also comprises a small proportion of other 

land uses. Data includes strata lots approved by the WAPC. Strata lots approved by local government are excluded. Data refers to lots on 

non-cleared agreements. Non-cleared agreements are matched on WAPC sub division application numbers. Data are rounded. 

2. The total figures for October, November and December 2010 have been estimated from analysis of a partial data set and historical trends 

due to a change in reporting methodologies. Therefore, caution is advised when considering these data for decision making purposes. 

The data will be revised as further information becomes available 

17


Final Approvals 

Final approval is granted by the Western Australian Planning Commission when the developer has 

satisfied all approval conditions, including the construction of roads and provision of utility services to 

the new lots. Final approval permits the issue of new titles by Landgate. 

Figure 14 

Residential lots granted final approval during the quarter 

Scope 

Residential 

lots


December quarter 2010 State figure was lower than the average, mainly due to the low level of 

country approvals. 

In the Metro/Peel Region, planning sectors with the highest proportion of approvals were North West 

and North East (both 22% of total), followed by the South East sector with 21%. In the country regions 

of the State, the South-West and the Pilbara regions contributed to approximately 70% of the number 

of residential lots granted final approval. 

19


Disclaimer 

This document is published by the Department of Planning. Any representation, statement, opinion or 

advice expressed or implied in this publication is made in good faith and on the basis that the 

government, its employees and agents are not liable for any damage or loss whatsoever which may 

occur as a result of action taken or not taken, as the case may be, in respect of any representation, 

statement, opinion or advice referred to herein. Professional advice should be obtained before 

applying the information contained in this document to particular circumstances. 

Published March 2011 

Website: www.planning.wa.gov.au 

E-mail: research@planning.wa.gov.au 

Telephone: (08) 9264 7990 

Fax: (08) 9264 7566 

20

December Quarter 2010 - Western Australian Planning Commission

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