LAND SALES OF MORE THAN 40 PER CENT ABOVE HISTORICAL AVERAGES PUT FURTHER PRESSURE ON SUPPLIES IN THE SEPTEMBER QUARTER.
A survey of over thirty major land developers by the Urban Development Institute of Australia (WA Division) showed the number of blocks on the market fell 9.7 per cent over the three months to September 30 and 39 per cent over the past 12 months.
Developers are working as quickly as possible to bring forward planned stages, but these releases in Perth are being snapped up quickly amidst favourable market conditions.
Land developers are fast-tracking land releases and brought 55 per cent more lots to the market compared to 12 months ago.
The 80 surveyed residential projects selling land during the quarter sold an average of 34 lots; an increase of 30.5 per cent on levels 12 months ago and well up on the average of 13.2 lots per project two years ago. Moreover, September quarter sales volumes were 43 per cent above the ten-year average in Perth.
Lot sales versus stock on market
The City of Wanneroo remained the most active region for land development, with Alkimos the most popular suburb for vacant land sales north of the river in 2013.
Across all of Perth, Baldivis has recorded over twice as many vacant land sales in 2013 as the next best suburb, with a median land price of $189,000. Other popular suburbs for land sales include Harrisdale and Byford in Perth’s southeast. (See table below for full list.)
The addition of new projects and a lift in expected land development at existing developments will help ease supply concerns.
The Institute’s research showed developers are expected to increase the number of lots brought to the market in Perth over the next 12 months. The index tracking the number of lots expected to be available for sale over the next six months increased 23.2 per cent on June levels.
Land sales will continue to translate into above average housing construction levels in WA throughout 2014. House approvals in Perth are already up more than 50 per cent on levels 12 months ago and are running at the same pace as mid-2006 highs.
Top Locations for vacant land sales, Greater Perth, 2013*
*Based on settlements data supplied by Landgate. Preliminary data as it does not include sales made in 2013 that have not yet reached settlement. Excludes resales.
**Based on the average value of houses approved for construction in region during 2013 and the median land price.