Listings of new land in Perth have fallen to their lowest level in seven years, with developers scrambling to fast-track releases to keep up with demand.
The Urban Development Institute of Australia released a survey of more than 30 major land developments today, which showed listings fell by 24.7 per cent in the June quarter and 45 per cent over the past year.
UDIA WA chief executive Debra Goostrey said developers were bringing forward planned stages, but the releases were being snapped up quickly due to record low interest rates.
Ms Goostrey said 61 per cent more lots were brought to the market in 2012-2013 as compared with the previous year, but supply had been unable to keep up with demand.
She said developers sold the highest number of lots in 10 years over 2012-2013.
Sales of vacant lots were down 6.3 per cent in the June quarter, but remained 44 per cent above the 10-year metropolitan area average.
“The industry is doing its best to keep up the supply of lots and it is absolutely critical that the government does not introduce any further restrictions on the supply of land to the market if we are to avoid the price hikes that occurred last decade,” Ms Goostrey said.
“A larger proportion of higher priced lots changed hands and pushed the average price of lots sold up 6.2 per cent over the quarter to $238,400.”