Perth new land sales increase for third consecutive quarter
NEW land sales increased for the third consecutive quarter according to the latest data from the Urban Development Institute of Australia (UDIA WA).
Nearly 1500 new lots were sold in the June quarter, an increase of 3.8 per cent on the previous period.
“This is a reflection of improved consumer confidence and a sign of positive growth in the Perth market,” chief executive Allison Hailes said.
“Buyers are recognising the current value for money that they can achieve.”
While sales volumes increased, the average price of new lots sold in Perth decreased 1.7 per cent 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 onto the market in the next 12 months, our declining stock levels are likely to lead to moderate price increases over the next year.”
The majority of new land sales (32 per cent) were in the north western corridor, which includes substantial growth areas such as the cities of Wanneroo and Joondalup.
The average price of new land in the City of Wanneroo was $228,297 and $213,577 in the City of Joondalup.
The north eastern corridor, primarily represented by the City of Swan, held 21 per cent market share with an average price of new land 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 master-planned communities that are popular with a range of buyers.
“The rail extension to Yanchep will continue to see the northern corridor attract buyers.”
The south west corridor, home to the cities of Cockburn, Rockingham and Kwinana, represented the most affordable prices in Perth with the average price of land recorded at $217,821.
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 at $199,689.