The number of vacant lots on the market increased by 85.5 per cent in the March quarter, while land prices rose 8 per cent, according to figures released today by the Urban Development Institute in Western Australia.
The full text of a UDIA announcement is pasted below
The Urban Development Institute (UDIA) (WA) released new figures today which indicate an increase in the number of lots on the market.
"An increase in the number of lots available for sale is good news for land purchasers" UDIA Executive Director Debra Goostrey said.
"More land means that prices will not be artificially inflated because of supply constraints that have had a significant impact on prices over the last 2 years."
As at 31 March 2007, 1343 lots were on the market, an 85.5% increase on the December 2006 quarter figures.
"Since land supply hit an all time low in June 2006 when there were only 337 lots on the market, UDIA has worked with government and developers to ensure that an adequate supply of land is available to meet continuing demand for blocks" Ms Goostrey said.
"In June 2006 when there was virtually no land on the market, we saw our biggest price leap in one quarter." Ms Goostrey said. "In that quarter prices increased by 37%."
The average price of land increased by a more conservative 8% in the March 2007 quarter, which indicates the market is starting to settle.
Growth areas such as Wanneroo (405 lots on the market), Serpentine Jarrahdale (267 lots), Armadale and Cockburn (both with 162 lots on the market) were where most of the land was available.
With the State government's recent budget statements committing to improving the approvals process and cross agency communication, the development industry hopes that land supply will continue to improve in Western Australia over the next 12 months.
