New land values are up, sales numbers are increasing and developers are clearly showing their confidence in the property market upswing as construction activity is also on the rise, according to the latest new land data from the Urban Development Institute of Australia (UDIA WA).
“UDIA’s March 2018 quarter new land market data shows that the average price of new land in Perth is up 4.9% over the last 12 months to $234,928,” UDIA CEO Allison Hailes said.
“The data shows that the value of new land has been on an upward trend since March last year,” Ms Hailes said. “This is a very promising sign for the property market recovery.”
“While the number of lot sales remains down on last year, the quarterly results are promising, with a 1.6% rise in the number of new lots sold during the March quarter, the third consecutive quarterly rise in a row,” Ms Hailes said.
“While these figures are positive, we are particularly excited by the level of construction activity this quarter,” Ms Hailes said.
There is a 36.8% increase in the number of lots under construction predicted for release within the next 12 months.
“Increased construction activity is a clear sign of developers’ confidence in the market, and this indicates they are obviously expecting buyer demand to increase over the year,” Ms Hailes said.
“While construction levels are still down on previous years this is a really promising early sign of a lift,” Ms Hailes said.
“The lift in construction activity can be attributed to several new estates and stages that are being brought to the market, especially in the North West Corridor,” Ms Hailes said.
“In fact, the North West Corridor has dominated the market during the March 2018 quarter with a 28.3% share of all sales in the Perth Metro Area,” Ms Hailes said.
The North West Corridor’s growth is underpinned by several masterplanned communities in the City of Wanneroo and over the next few years this corridor will also benefit from the Yanchep rail extension that will include stations at Alkimos, Eglinton and Yanchep and is due to commence construction in 2019.
The average lot price in the North West Corridor is $238,230.
The South West Corridor is second in terms of sales activity, with 25.2% market share.
“The average price of new land in the South West Corridor sits around $224,870 which is well under the Perth Metro average,” Ms Hailes said. “That makes the corridor the most affordable in the metro area and home to some great value opportunities.”
“In fact, the current value of greenfield land across Perth provides a fantastic opportunity for those in a position to buy,” Ms Hailes said.
“The market is beginning to pick up and prices are expected to rise over the year,” Ms Hailes said. “When you consider building prices are also quite low, a new house and land package is a great option, especially as the first home owner grant is only available for new builds.”
“There is also a diversity of housing product on offer in today’s greenfield markets, from apartments and townhouses, to the larger more traditional family blocks,” Ms Hailes said.
“The Perth market is diversifying and there is something for everyone in the current market,” Ms Hailes said.
Originally published by UDIA WA