THE RISE OF THE SMALL LOT IS GETTING PLENTY OF MEDIA ATTENTION AT THE MOMENT WHICH IS INTERESTING GIVEN THAT IT IS MORE ABOUT “BACK TO THE FUTURE” RATHER THAN A NEW PRODUCT.
Six metre wide lots were not unusual in areas such as Subiaco which were developed before the rise of the motor vehicle.
Small lots have many advantages including providing a lower entry level price and delivering a “lock and leave” outcome for those who are not keen to spend their weekends gardening. But they are not for everybody and we must keep delivering diversity in the types of lots available in the market to suit the varied needs of buyers.
The March edition of the Western Australian Planning Commission’s (WAPC) “State Lot Activity” report was released recently and provides further insight into the shrinking Perth lot. In 2007/08 there were 2,158 lots that were less than 320sqm given final approval, by 2012/13 that figure had increased 62% to 3,494 lots. As a percentage of all approvals the small lot has risen from 16% to 27% of lots in Perth.
Whilst 20.2% of lots under 320sqm are found in the central suburbs of Perth, the north-western and south-western corridors have even more small lot product being approved with a 23.5% and 20.4% share respectively.
Overall, the median size of lots in Perth has fallen from 511sqm in 2007/08 to 426sqm in the March quarter 2014. It dipped as low as 407sqm in the September quarter 2013 but has increased in response to an easing in the first home buyer market.
The decreasing size of lots is happening across the state with the median size of lots outside of the metropolitan area falling 20.3% from 2007/08 to 514sqm in the March 2014 quarter.
If you are after a lifestyle block the news is not good. The number of lots receiving final approval by the WAPC with a size between 1000sqm and 2,999sqm has fallen from 473 in 2007/08 to 331 in 2012/13 with a similar outlook for 2013/14. As a proportion of all lots in Perth they have fallen from 3.6% to 2.6% over the period.
By far the dominant lot size category at the moment is the range between 320-499sqm which comprised a massive 45% of lots receiving final approval in 2013/14. That seems to be the size that is flexible enough, and affordable enough, to meet the needs of most people.