Perth’s greenfield land market is on the cusp of positive growth with Director of Research4 Colin Keane issuing the “T700 Challenge” at an Urban Development Institute of Australia (UDIA WA) luncheon today.
Touted the ‘greenfield guru’ Mr Keane delivered a presentation that outlined how, in order to reach positive growth, new land sales need to lift to 700 lots per month across Perth.
As he highlighted, this is a very achievable goal, but it is reliant on moderate growth in population and jobs.
KEY PERTH MARKET HIGHLIGHTS
| MEDIAN LOT PRICE (PERTH) | $224,000 |
| LAND AS % OF MEDIAN HOUSE PRICE | 46% |
| AVERAGE LOT SIZE | 375sqm |
Source: Research4
“UDIA called the bottom of the WA property market late last year and Mr Keane’s positivity today about the market moving forward is further evidence that we are on the road to recovery,” UDIA WA CEO Allison Hailes said.
Mr Keane’s presentation highlighted that in order to boost demand, he estimates we need to attract an average of 1000 extra people to the state per month and create 500 new jobs per month.
“Despite the need to boost demand, Mr Keane did emphasise that we shouldn’t just be focussing on jobs growth to attract people to the state,” Ms Hailes said.
“It will be critical in the context of the new knowledge economy and the fact that many white collar workers can do their businesses from anywhere in Australia, that Perth and WA more broadly attracts people through the lifestyle opportunities available here,” Ms Hailes said.
“We have a lot to offer and can compete with the likes of Sydney and Melbourne to get people moving here to live and do business but there are some issues that we need to address” said Ms Hailes.
“The price of interstate and overseas airfares is more expensive from Perth and this is an issue that can detract from the other more positive aspects of living here, because it makes it more costly to travel for work, to see family or for holidays,” Ms Hailes said.
“This observation fits in with the conversation that UDIA has been spear heading in the last few months about the need to develop ‘brand Perth’ and for Perth to market itself as a global city with much to offer people in terms of lifestyle opportunities,” Ms Hailes said.
“Our great coastline, green spaces, relaxed living, good schools and increasingly vibrant urban centres are what will make people want to visit and potentially stay long term in Perth,” Ms Hailes said.
“As Colin suggests, places like Geelong, Hobart and the Sunshine Coast are already marketing themselves in this way and finding success,” Ms Hailes said.
“The growing international student market is also an area that Perth should focus on, attracting more students to study and live in Perth,” Ms Hailes said.
CURRENT MARKET CONDITIONS – RESEARCH4 DATA
Looking at the breakdown in market share across Perth, according to Research4 data, the North East Corridor is the largest market, with 28% market share in 2018, followed by the South West Corridor (26%), South East with 22% and North West with 19%.
With a median lot price of $224,000, Research4 has recorded 0% annual growth in prices over the last 12 months.
Mr Keane suggests that current values in Perth are $6000 under fair market value and the modelled median land price should be sitting at around $231,000.
In terms of future capacity to accommodate growth, the Perth land market is well placed with capacity to satisfy the ‘T700’ target for land sales.
Ends.
For more information:
Gemma Osiejak
UDIA WA Executive Manager Communications & Marketing
M: 0421 506 819
Contact Colin Keane – Director of Reseach4:
E: colin.keane@researchfour.com
M: 0418 342 988