The West Australian
Perth has hit a record low number of lots listed for sale, supporting claims from a national industry expert that prices are currently below fair value and heading for a steep increase.
There were just 386 blocks on the market in the March quarter, which was the second-lowest number on record since the 261 blocks in the December quarter, according to the Urban Development Institute of Australia (WA), making it the worst six-month period since records began 20 years ago.
The strongest six-monthly period was between June and December 2018, when 6073 lots were listed.
The keynote speaker at a recent UDIA event, Colin Keane, said Perth land was below fair value, based on comparisons with the Eastern States and the level of supply and demand.
Mr Keane said prices were set to rise to adjust to eastern values and to cope with demand, which will rise as changes to the capital gains tax discount funnels more investors into house and land deals.
The current tax discount remains on offer to investors who build new homes.
Chief executive Tanya Steinbeck congratulated both the State and Federal governments for enabling housing supply in their recent Budgets.
“Off the back of UDIA advocacy, we welcomed the inclusion in the State Budget of a $522 million investment in power, sewer and water infrastructure that will unlock thousands of new homes in key growth areas of Perth,” she said.