PERTH’S land market is showing signs of recovery, with last quarter’s results boasting a 3.7 per cent increase in price, according to gures released by Urban Development Institute of Australia (UDIA WA).

The average price of land in the Perth metropolitan and Peel area for the June quarter was $232,348, up from $224,033 in the March quarter, showing an increase of more than $8000.

UDIA WA CEO Allison Hailes said the June quarter results suggested a bright outlook for the market.

“This moderate increase in the average cost of vacant land in Greater Perth is a sign of positive things to come for the property market in Western Australia,” she said.

The increase in price is due to a positive ow-on effect from a decrease in the number of lots on the market.

“Prices declined for three consecutive quarters prior to this increase,” Ms Hailes said. “This was due to more stock on the market and less demand for land from consumers.”

As of June 30, the number of lots on the market in Perth and Peel was down nine per cent compared with March 31.

“We are now seeing stock on the market return to more normal levels and, in turn, a strengthening in values,” Ms Hailes said.

Within the metropolitan area, the north-east corridor recorded the biggest share of sales for the quarter, with a total of 28.4 per cent of all sales in the area and an average price sitting at $219,895.

“The north-east corridor incorporates the City of Swan, where a number of new housing developments are attracting new homebuyers,” Ms Hailes said.

Ray White Swan City senior property consultant Pat Rahimi agreed the area was elding plenty of interest from rst homebuyers.

“Affordability is an important factor for rst homebuyers, and there are plenty of properties under the threshold here,” Mr Rahimi said.

He said the area was attracting increased interest thanks to emerging employment prospects.

“There are many new and existing pieces of infrastructure and educational facilities in the northeastern corridor that attract prospective purchasers related to jobs associated with such infrastructure,” he said. “For example, Perth Airport, the newly built St John of God Midland Hospital and educational facilities like Guildford Grammar and Curtin University’s proposed medical school.”

Mr Rahimi was con dent the area would continue to show positive signs ahead.

“Factors like affordability, jobs and lifestyle will attract future investment,” he said. “I am very optimistic about the future of this area.”

The south-west metropolitan corridor recorded the second highest number of sales at 27 per cent, with the coastal areas of Kwinana, Rockingham and Cockburn all attracting plenty of interest from buyers.

Land was slightly higher in the area, with an average of $237,133 compared to $219,895 in the north-east, which Ms Hailes said was due to premium coastal developments pushing up the price.

ACTON Coogee property consultant Fleur Schrader said the coastal appeal of areas such as Coogee, Munster and Cockburn was drawing plenty of interest from buyers.

“The coastal location is a great drawcard,” she said.

“The infrastructure and number of new cafes going in at a fast rate assists in making the new estates into proper communities from the beginning.”

Miss Schrader said Munster provided great value for money for first homebuyers, offering affordable land prices and close proximity to the beach.

“I think Munster is a real hidden gem, as it still offers great entry-level prices in a location minutes from the beach, bordering Coogee and with easy and direct driving routes to Cockburn Central or into Fremantle,” she said.

Meanwhile, REIWA data showed land prices rose 3.3 per cent in Coogee in the first two quarters this year.

Ms Hailes said the combined land results signalled positive signs ahead for WA’s property market.

“Overall, Perth property is beginning to show signs of recovery,” she said.

“Along with the positive economic reports released last week predicting broader economic growth for WA next financial year, we have every reason to be hopeful.”