The West Australian
Land sales are still booming in Perth as West Australians race to snap up lots and build new homes despite the winding up of State and Federal government stimulus measures.
There were 1927 new lots sold in the March quarter of 2021, compared with 1466 in the March quarter 2020, according to Urban Development Institute of Australia figures.
UDIA WA chief executive Tanya Steinbeck said new lot sales rose by close to 5 per cent from the December to March quarter and building activity was up 47 per cent on the same time last year.
“Even more significant is the 31 per cent increase in sales for the March 2021 quarter compared with the same time last year,” Ms Steinbeck said.
“Buyers are clearly making the most of WA’s strong economic position, low unemployment, record low interest rates and accommodative lending conditions.”
She said it was a remarkable shift from the beginning of last year when Perth was amid a sluggish five-year market downturn.
The average price of new lots has been rising just one per cent across the quarter and about 7 per cent over the year, according to the UDIA WA’s Urban Development Index which surveys major developers in the State.
“Developers lifted their activity levels significantly following the huge lift in demand prompted by the government stimulus and they are keeping the momentum going this year,” it said.
UDIA research partner and Urbis director David Cresp says particular growth areas included the north-east and north-west corridors, which were benefiting from the Metronet rollout.
In 2015, the north-east corridor made up only 20 per cent of sales and this has now shot to 28 per cent of sales for it to become the strongest selling corridor.