Perth achieved 3,322 new lot sales during the June 2020 quarter – the most land sales the Urban Development Institute of Australia WA has ever recorded for a quarter.
Perth achieved 3,322 new lot sales during the June 2020 quarter – the most land sales the Urban Development Institute of Australia WA has ever recorded for a quarter.
The institute began its land market survey in 1990 and said it was the highest number of quarterly land sales on record.
UDIA WA also saw a 126 per cent increase in sales over the quarter, compared with 1,999 the previous quarter.
UDIA WA chief executive Tanya Steinbeck said the state and federal government home building stimulus measures had clearly had a significant impact on the Perth market.
“Despite significant economic impacts across the country and indeed the globe, the Perth market is holding strong and providing fantastic opportunities for new home buyers,” Ms Steinbeck said.
UDIA WA’s land market data is based on an extensive survey of the major land developers in Perth.
The City of Swan had the highest number of lot sales for any local government area with just over 1000 lots sold for the June quarter, with an average price sitting at $228,000.
The City of Wanneroo followed closely behind, recording 800 sales for the June quarter at an average price of $173,000.
The most affordable location, with an average price of $173,000 was the City of Rockingham.
“While demand has surged, average prices for new land have remained relatively steady at $226,400,” Ms Steinbeck said.
“Comparative to other capital cities in Australia, Perth remains an affordable and stable option for those looking to enter the market.”
Ms Steinbeck said new land prices had risen just 0.8 per cent over the quarter and 2 per cent since the same time last year.
“The tight time frames that the stimulus packages are available (for) has obviously caused a rush of potential buyers seeking new land to build a home,” Ms Steinbeck said.
“The industry has had to ramp up quickly to meet such an influx in demand.
“The good news is there is still a decent level of supply either on the market or under construction to meet continued demand.”
UDIA WA’s survey found there were approximately 7,500 new lots either on the market or under construction.
“We saw a flurry of buyers hit the market when the stimulus measures were first announced and this initial influx has settled down somewhat,” Ms Steinbeck said.
“This is more than enough to meet demand as long as we can get approvals and titles issued in a timely manner.”
