Rising confidence in the Perth housing market and improved economic growth is having a positive impact on the new land market according to the latest data from the Urban Development Institute of Australia (UDIA WA).
“New land sales in Perth are up 3.8% for the June quarter with close to 1500 lots sold in the region,” UDIA WA CEO Allison Hailes said.
“This is a reflection of improved consumer confidence and a sign of positive growth in the Perth market,” Ms Hailes said. “Buyers are recognising the current value for money that they can achieve.”
While there has been a lift in sales volumes, prices are still slightly down this quarter, but this trend won’t last long according to Ms Hailes.
The average price of new lots sold in Perth is down a minor 1.7% for the quarter to $230,825.
“Several new estates were launched in the last year which brought an influx of stock to the market,” Ms Hailes said. “That increase in stock has put downward pressure on prices.”
“However, with developers expecting to bring less land on to the market in the next 12 months, our declining stock levels are likely to lead to moderate price increases over the next year,” Ms Hailes said.
“What this means is, we won’t see prices dropping much more, so this is s prime time for buyers to purchase lots,” Ms Hailes said.
Looking at the figures in more detail, the North Western Corridor, comprising of substantial growth areas such as the City of Wanneroo and Joondalup, dominated the market with 32% of all sales in Greater Perth.
The average price of new land in the City of Wanneroo is $228,297 and in the City of Joondalup it is $213,577.
The North Eastern corridor, primarily represented by the City of Swan, held 21% market share with an average price of new land in the area recorded at $236,688.
“The growth areas across the northern corridor are currently dominating the Greater Perth market,” Ms Hailes said. “These areas are home to several significant masterplanned communities that are popular with a range of buyers.”
“The rail extension to Yanchep will continue to see the Northern Corridor attract buyers,” Ms Hailes said.
The South West corridor, home to the Cities of Cockburn and Rockingham and the Town of Kwinana, represent the most affordable prices in Perth with the average price of land recorded at $217,821.
Specifically, the Shire of Murray recorded the cheapest land in Greater Perth with an average price of $164,864. This was followed by the City of Rockingham at $176,848 and the City of Kwinana with an average price of land sitting at $199,689.
“There are some fantastic opportunities across Perth to get into the new land and house market and buyers will get great value for money,” Ms Hailes said.
Originally published by UDIA WA