Geraldton property market slows with sales down and properties taking longer to sell, according to REIWA data

The Geraldton property market has stagnated, sales are down, and properties are taking longer to sell, according to the Real Estate Institute of Western Australia’s latest regional quarterly update. REIWA’s September update reveals that Geraldton’s median sale price rose by just 0.3 per cent in the quarter to $376,000, compared with a 12-month growth of 8.6 per cent. Activewest Real Estate’s Phil Sorgiovanni said this was because of an easing in sales and a stable supply of new stock. “If stock continues to be at least equal to sales then any price rises usually remain steady,” he said. “A considerable amount of the listings coming to market are from the rental market – once these dry up and if sales remain consistent then we may well see another lift in the median price point.” While interest rates may well have also contributed to this lack of growth, according to Mr Sorgiovanni. “People still purchase a property they may just be buying in a lower price category which will hold the median price point.” Geraldton Property Team’s David Potiuch said a lot of buyers are now reassessing whether to get into the market following seven months of interest rate rises. “With possibly more rate rises forecast they are waiting to see when it may stop to enter the market — which could be in six months time,” he said. Property sales fell in the September quarter, going from 222 to 185, a decrease of 16.7 per cent. Listings for sale increased by 18 per cent in the past 12 months, from 234 to 273 but recorded just 1.5 growth for the quarter. Mr Sorgiovanni said although numbers have slowed, they are still strong compared with a few years ago. “Interest rates and cost-of-living pressures are also making buyers a little more cautious in their approach to investment.” This mix of factors is causing properties to take longer to sell, rising from 33 days in June to 45 in September, up 36.9 per cent. “Comparatively a few years back the days on market was up around 120, so 45 days on market in current conditions is still in a very good space for sellers,” Mr Sorgiovanni said. Mr Poituch highlighted rising interest rates and a declining Eastern States property market as factors playing on buyers’ minds with many happy to wait it out. Moving to the rental market, Geraldton’s crisis appears to be easing with the vacancy rate sitting at 2.3 per cent for September, the highest in the State. A sign of a balanced market is a vacancy rate of 3 per cent, with Geraldton reaching a low of one per cent. Mr Sogiovanni said pressure from larger organisations chasing rentals has eased, which may be contributing to the increase in vacancy. “It still remains extremely difficult for those looking to find suitable accommodation when basing it on price and location,” he said. Mr Potiuch said there were a lot of lease breaks this time of year as people start to move come closer to Christmas. “We are noticing more properties available compared to recent months in our own office rent roll. It has been crazy, so it is a relief to see more product available for prospective tenants,” he said.