The average price of new residential land in Perth is amongst the cheapest in the country, at $225,578, according to new September quarter figures from the Urban Development Institute of Australia (UDIA WA).
“The new land market in Perth has seen significant price reductions in recent years,” UDIA WA CEO Allison Hailes said.
“However, with the promising signs that are emerging in the broader WA economy, we don’t expect these market conditions to last much longer,” Ms Hailes said.
The average price of new land is down 2.3% for the September 2018 quarter and down 3.9% over the year.
“Given current market conditions, there are some very affordable house and land packages available to buyers,” Ms Hailes said.
New land in Perth is cheaper than in Melbourne, Sydney and Brisbane and on par with Adelaide.
“While the current downturn has lasted longer than many of us expected, we are seeing light at the end of the tunnel,” Ms Hailes said.
“The State of the States report released by CommSec today shows that while WA’s economy has been one of the worst performing, there are green shoots emerging that are reflected in mining activity and growing full-time employment,” Ms Hailes said.
Looking more specifically at the northern regions of the metro area, it continues to attract the largest proportion of new home buyers in Perth in the Cities of Wanneroo, Swan and Joondalup.
“The Northern Corridors provide affordable land in proximity to the coast in the west and natural bushland in the east,” Ms Hailes said. “Public transport connectivity will be improved even further under METRONET with the extension of lines to both Yanchep and Ellenbrook.”
“The recent government announcement that a significant parcel of land in Henley Brook has been rezoned to urban will also open up further opportunities in the north,” Ms Hailes said.
“Given the popularity of the region and the transport infrastructure that is going to be developed, it is critical that we continue to ensure adequate land supply in the area so that we can keep affordability in check,” Ms Hailes said.
The average price of land in the city of Wanneroo is $217,861 and in the City of Swan it is $234,518.
“The Southern metropolitan region is home to even more affordable land in Perth and provides an attractive lifestyle option for young families, with excellent connectivity provided by the existing rail line and freeway,” Ms Hailes said.
“Again, this is set to improve further with the Thornlie-Cockburn link that will enhance east-west connectivity across the area with the proposed stations at Ranford Road and Nicholson Road greatly improving access to the Canning Vale employment centre,” Ms Hailes said.
With an average price of $171,000, Rockingham has the lowest average lot price in the Southern region, offering exceptional value for money given its close proximity to the coast and employment centres.
“Long-term employment prospects for the region look particularly healthy with the State Government establishing the Westport taskforce to investigate the feasibility of creating an outer-harbour in Cockburn Sound,” Ms Hailes said.
“This sort of project is expected to result in significant new job creation for the area and attract significant investment.”
“The establishment of a $700 million lithium processing plant in Kwinana is creating some 400 construction jobs and will involve 150 ongoing jobs during operation, with the plant scheduled for commissioning in late 2019,” Ms Hailes said.
In terms of lot size, the average size of lots in the Perth Metropolitan Area has remained steady this quarter at 387 square metres.
“Developers are continuing to look at ways to deliver greater diversity to the market,” Ms Hailes said. “Lot sizes in many areas now range from as little as 100 square metres through to the more traditional 400-500 square metres,” Ms Hailes said.
“This is a reflection of the changing demographics in Perth home buyers, with the need to cater for younger singles and couples, families and older people looking to downsize,” Ms Hailes said.
Ends.
For more information:
Gemma Osiejak
UDIA WA Executive Manager Communications & Marketing
E: gosiejak@udiawa.com.au
M: 0421 506 819