Pressure on Perth homebuyers is easing, with residential development approvals increasing and growing evidence that the market is slowing, according to the State Government.
Planning and Infrastructure Minister Alannah MacTiernan said residential land prices were expected to stabilise, so prospective homebuyers should not be panicked into buying.
"The Government's target of bringing 20,000 lots to final approval this financial year is well within reach," Ms MacTiernan said.
"In July this year, 1,267 lots received final approval and this increased to 1,430 in August.
"We have put more money and staff into planning and environment agencies to help speed up approvals, so we expect these figures to continue to grow.
"There is no land shortage; Perth has more than 18 years' supply already zoned for residential development.
"We are working hard to keep increasing our output but we need to ensure the developers are doing their bit and to move on their Government approvals.
"A major barrier is the capacity of the civil construction industry to undertake the construction of roads, drainage and earthworks necessary to produce residential lots.
"However, these blockages resulting from shortages in skills and machines will eventually ease and help us get more land on the market."
The Minister said ABS figures showed that 40 per cent of the housing market by value was investor demand in June 2006, and anecdotal evidence was that much of it from the Eastern States.
"Financial advisors are now recommending these investors move their money to
underpriced Eastern States products in the stagnant markets of Sydney and Melbourne," she said.
"There is also some evidence that the rental vacancy rate is creeping up and this is deterring investors.
"The number of established houses on the market has increased from 4,000 (June 2006) to 7,000 (early September 2006) and the average sale time has increased from one week to one month over the same time period.
