New land sales statistics for Western Australia that were published today for the December 2020 quarter round out an unprecedented year for the Perth market with sales for the year a almost double compared to 2019.

The UDIA WA Urban Development Index shows that 10,035 new lots were sold in the 2020 calendar year compared with just 5,284 the year previous.

“It is no secret that the Perth residential market headed into 2020 off the back of a five-year downturn,” UDIA WA CEO Tanya Steinbeck said.

“No one could have predicted the absolutely amazing impact that the federal and state government building stimulus measures would have on the market in early 2020, sparking sales volumes the likes that many developers have never experienced before,” Ms Steinbeck said.

According to UDIA, the bulk of sales in 2020 were recorded in the June and September quarters, with sales dipping in the December quarter by 46%, sitting at just under 2,000 sales.

“While new land sales dipped in the December quarter, they remained much higher than the rolling five-year average of 1,579 lot sales per quarter that was experienced between 2015 and 2019,” Ms Steinbeck said.

“The dip can most likely be attributed to the winding up of the stimulus measures which were only available until December 31, 2020,” Ms Steinbeck said.

“With timeframes for building commencement also attached to stimulus eligibility, builders were operating at capacity and some had to close their books for a period to ensure they could meet new home builders needs in securing the stimulus payments this year,” Ms Steinbeck said.

While sales numbers were high throughout 2020, the good news is that prices remained relatively steady, with the average price of new land in the Perth Metro Area sitting at $240,650 in the December quarter. That is 6% higher than the same time last year.

“Perth remains relatively affordable compared with other capital cities and that is good news in attracting more investment into our local market,” Ms Steinbeck said.

“We have an emerging rental crisis in Perth with a sub 1% vacancy rate,” Ms Steinbeck said. “We need to do what we can to attract investors into our market to boost the supply of rental stock immediately.”

Looking at specific areas of activity, UDIA’s data shows that the northern corridor experienced the lion’s share of land sales in the December 2020 quarter while the southern corridor is home to some of the more affordable land.

The City of Wanneroo recorded the most sales for the quarter with 460 sales at an average price of $217,000.

The City of Swan also experienced high levels of sales activity with 430 sales at an average price of $220,000.

Looking south, the City of Rockingham remains the most affordable location for new land with an average price of $181,000.


Gemma Osiejak
Executive Manager Communications & Marketing
P: 0421 506 819