MOST NEW LAND SALES ON RECORD ACHIEVED IN PERTH
The land sales market in Perth is surging with latest data from the Urban Development Institute of Australia (UDIA WA) recording the most land sales during the June quarter that have ever been recorded*.
According to UDIA WA there were 3,322 new lots sold in the June 2020 quarter compared with 1,999 the previous quarter. That is a 126% increase in sales over the quarter.
“The state and federal government home building stimulus measures have clearly had a significant impact on the Perth market,” UDIA WA CEO Tanya Steinbeck said.
“Despite significant economic impacts across the country and indeed the globe, the Perth market is holding strong and providing fantastic opportunities for new home buyers,” Ms Steinbeck said.
UDIA WA’s land market data is based on an extensive survey of the major land developers in Perth.
“While demand has surged, average prices for new land have remained relatively steady at $226,400,” Ms Steinbeck said. “Comparative to other capital cities in Australia, Perth remains an affordable and stable option for those looking to enter the market.”
“New land prices have risen just 0.8% over the quarter and 2% since the same time last year,” Ms Steinbeck said.
“The tight timeframes that the stimulus packages are available has obviously caused a rush of potential buyers seeking new land to build a home,” Ms Steinbeck said. “The industry has had to ramp up quickly to meet such an influx in demand.”
“The good news is there is still a decent level of supply either on the market or under construction to meet continued demand,” Ms Steinbeck said.
“We saw a flurry of buyers hit the market when the stimulus measures were first announced and this initial influx has settled down somewhat,” Ms Steinbeck said.
“UDIA WA’s survey shows that there are approximately 7,500 new lots either on the market or under construction,” Ms Steinbeck said. “This is more than enough to meet demand as long as we can get approvals and titles issued in a timely manner.”
Market Activity Summary
UDIA WA Urban Development Index June Quarter 2020
|Total Lot Sales (Perth Metro)||3,322|
|Average Price of Lots sold||$226,400|
|Average Size of Lots sold||$371m²|
|Lots in the pipeline / supply||7,500|
- The City of Swan had the highest number of lot sales for any local government area with just over 1000 lots sold for the June quarter.
- The average price in the City of Swan is $228,000
- City of Wanneroo also recorded a high proportion of sales with 800 sales for the June quarter at an average price of $215,000
- City of Rockingham most affordable location with an average price of $173,000
- Shire of Serpentine Jarrahdale also provides excellent value with large lots in the area at an average price of $190,000
*Highest sales recorded by UDIA’s land market survey dating back to 1990
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