The Albany property market in 2024 provides a unique case study when examining the relationship between building approvals and real estate sales. In a year marked by dynamic changes in both building activity and property transactions, the correlation between these two key factors reveals important insights into market trends and economic conditions in the region.
Building activity in Albany has been robust throughout 2024. According to the data from the City of Albany’s building reports, 64 building permits were issued in July 2024, totalling a value of $16.9 million (CoA Approvals Aug 2024). The types of permits issued include residential dwellings, outbuildings, and commercial properties. Notably, several permits were granted for significant construction projects, such as an early learning centre valued at over $1 million and several residential complexes worth more than $2.7 million each (CoA Approvals Aug 2024). This uptick in construction activity reflects strong developer confidence in the local market, supported by demand for new housing and infrastructure.
The overall trend shows sustained building activity, particularly in residential sectors. Throughout the year, there has been a mix of approvals for single dwellings, grouped dwellings, and commercial developments (CoA Approvals Aug 2024). This suggests that developers are responding to ongoing demand in both residential and commercial markets, which aligns with the broader economic recovery post-pandemic.
On the sales side, Albany saw 665 residential sales in the 12 months leading up to August 2024, representing a 2% decrease from the previous year (REIWA residential report ) Despite this slight dip, the market remains resilient, driven by strong demand for houses and land. The median sale price for a house in Albany as of August 2024 stood at $540,000, marking a significant 14.3% increase compared to the same period in 2023 (REIWA residential report )Similarly, land prices saw modest growth, with the median sale price for land reaching $199,000
The most active price range for house sales was between $500,000 and $599,999, with a growing share of sales occurring in the higher price brackets above $800,000. This shift suggests an increasing demand for premium properties, reflecting the overall rise in property values in Albany. Additionally, the number of active listings has decreased by 15%, pointing to a tightening market where demand outpaces supply.
The relationship between building approvals and sales is often cyclical, with increased construction activity typically following periods of high demand and price appreciation in the property market. In Albany, the rise in building approvals during 2024 corresponds with the continued high median house prices and land sales, indicating that developers are capitalizing on the strong market conditions to meet demand.
One clear correlation is the lag between approvals and completed sales. As building projects initiated in 2024 are completed, they are expected to add to the housing stock, potentially easing the pressure on prices and increasing the number of properties available for sale. However, with 175 properties listed for sale as of August 2024, representing a 15% drop from the previous year, the limited supply continues to support rising prices, particularly in the residential sector.
Another factor contributing to the correlation is the increased focus on premium properties. With building approvals for high-value residential developments and substantial commercial projects, developers are targeting the upper end of the market, where demand has been strongest. As noted, a significant portion of house sales in 2024 occurred in price brackets above $800,000, and this is likely to continue as more new builds are completed.
Looking ahead, the current level of building activity suggests that Albany’s housing supply will increase over the coming months and years, which could lead to a stabilization of property prices. However, the persistent demand, particularly for premium properties, means that price growth may continue, albeit at a slower pace.
The increase in approvals for commercial and infrastructure projects, such as the early learning centre and other significant developments, also indicates broader economic growth in the Albany region. This, in turn, supports the property market by driving population growth, employment, and demand for housing. As more families and professionals move into the area, the demand for both new and existing homes is expected to remain strong.
The Albany property market in 2024 highlights the intricate relationship between building approvals and property sales. While the market has seen a slight reduction in sales activity, this has been offset by a strong increase in property values, particularly in the residential sector. The rise in building approvals reflects developers’ response to ongoing demand, especially for premium properties. As new projects are completed, they are likely to alleviate some of the supply pressures that have driven up prices, leading to a more balanced market in the future.
For potential buyers and investors, the data suggests that Albany remains an attractive market, with opportunities for capital growth in both residential and commercial sectors. The current building activity, combined with sustained demand, indicates that Albany’s property market is well-positioned for continued growth, making it a key area to watch in Western Australia’s broader real estate landscape.
