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Apartments lead the way in WA

By Kevin Kelly

Western Australia's construction efforts have largely been focused on the apartment sector over recent months, as buyers and investors show demand for high-density living.

The state government's Housing Industry Forecast Group believes 15.4 per cent of housing stock in the region will be apartments by the end of next year. Builders are keen to construct these types of property, even though there's been a slowdown in sales, noted the Real Estate Institute of Western Australia (REIWA).

The group noted that many apartment projects need at least 75 per cent of residences to have been pre-sold before being given the green light. While this isn't an issue for inner-city locations such as Bunbury, it could cause problems in more remote areas of the country.

A sellers' market is expected to emerge next year in Perth, which in turn will force prices up. As a result, buyers might start to look to more affordable parts of the country – such as real estate in Eaton – to be able to secure the property they want.

How is construction currently faring?

Results of the October Australian Industry Group/Housing Industry Association Australian Performance of Construction Index showed apartment building has achieved the highest level of growth in the past ten years.

This indicator was up 9.2 points from the previous month to register an overall reading of 72.4. This emerged as the housing building sub-index contracted for the first time in five months.

If apartments are where efforts are going to be concentrated over the next few years, you could find it worthwhile to enlist the services of a real estate agent in Eaton. Demand for these properties may soon start to grow, in which case it will be beneficial to have an expert on your side.

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