New land sales rise again

New land sales in Perth have increased for the third straight quarter, according to new data out today, with the Urban Development Institute of Australia WA saying the results reflect rising confidence in the local market.

New land sales in Perth were up 3.8 per cent for the June quarter with about 1,500 lots sold,

“This is a reflection of improved consumer confidence and a sign of positive growth in the Perth market,” UDIA WA chief executive Allison Hailes said.

“Buyers are recognising the current value for money that they can achieve.”

Despite the increase in activity, the average price of new lots in Perth was down 1.7 per cent for the quarter to $230,825.

“Several new estates were launched in the last year, which brought an influx of stock to the market,” Ms Hailes said.

“That increase in stock has put downward pressure on prices.

“However, with developers expecting to bring less land on to the market in the next 12 months, our declining stock levels are likely to lead to moderate price increases over the next year.

“What this means is, we won’t see prices dropping much more, so this is a prime time for buyers to purchase lots.”

The north-western corridor, which includes Wanneroo and Joondalup, comprised 32 per cent of all sales in greater Perth.

The north-eastern corridor, primarily represented by the City of Swan, held 21 per market share with an average price of new land in the area recorded at $236,688.

The south-west corridor, which includes Cockburn, Rockingham and Kwinana, recorded an average price of land of $217,821.