The Perth and Peel region property market continues to show signs of recovery with new land sales up 4% for the December 2017 quarter according to the latest figures from the Urban Development Institute of Australia (UDIA WA).
“Developers have recorded excellent results for the final quarter of 2017 with strong sales numbers rounding out the year,” UDIA WA CEO Allison Hailes said.
“Given that the month of December can be subdued due to the holiday season, the growth in sales over the quarter is an even more promising indication of the markets recovery,” Ms Hailes said.
Prices have also shown positive growth, with a moderate 0.5% increase in new land values for the December 2017 quarter to $235,941.
“The average price of land in Perth and Peel has increased for three consecutive quarters and reflects the incremental growth that the region is experiencing as confidence returns to the market after a period of uncertainty,” Ms Hailes said.
The North West metropolitan region was a standout performer during the final quarter achieving 29.3% of sales across the city.
“The North West corridor, incorporating the Cities of Joondalup and Wanneroo, has recorded significant sales numbers as that area continues to attract buyers due to the availability of attractive, affordable land, in well serviced locations,” Ms Hailes said.
“The State Government’s promise to extend the rail line to Yanchep is also a big attractor for new home buyers in that corridor,” Ms Hailes said.
Average prices in Wanneroo are less than in the overall region, sitting at $214,327.
The North East Corridor also performed well, realising 24% of the market share in the December 2017 quarter. Average prices are also up 8% in the area to $247,389.
“The North East Corridor primarily represents sales in the City of Swan where new developments include masterplanned communities that provide residents with great amenity, shops and services all within the local area,” Ms Hailes said. “These factors are a big draw card for buyers.”
Venturing south, the Cities of Armadale, Kwinana and Rockingham also reflected strong sales numbers.
“The City of Rockingham has the cheapest land available in Perth with an average price of $184,178 which represents excellent value for money,” Ms Hailes said.
“Given we are at the beginning of this new market cycle, and interest rates are expected to starting rising this year, now is definitely a great time to get into the new land market,” Ms Hailes said.
“All indicators are pointing to a pickup in demand for land moving forward and that is likely to go hand in hand with further price increases during 2018 and beyond,” Ms Hailes said.
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