THE average price of new Perth land increased 3.9 per cent to $234,837 in the year to September 2017 while the number of sales fell 18.7 per cent in the September quarter, according to the Urban Development Institute of Australia’s (UDIA WA) latest data.
Chief executive Allison Hailes said the cancellation of the boost to the First Home Owners Grant on June 30 had a significant impact on sales.
The cut occurred in addition to slowing population growth and the ongoing effects of tougher economic conditions.
“The good news is that the data also reflects positive sentiment in the market moving forward and reinforces our recent assertions that we have reached the bottom of this market cycle,” Ms Hailes said.
“According to UDIA’s new figures, the overflow of stock sitting on the market has decreased by 10 per cent over the year and lot development activity is increasing.
“Lots under construction for release in the next six months is up 9.5 per cent on last quarter and that is a strong indication of developers’ confidence moving into next year.”
Ms Hailes said the positive outlook for 2018 was reinforced by recent increases in building and finance approvals while figures from the Chamber of Commerce and Industry also reflected the highest consumer confidence in almost three years.
The UDIAWA data showed the north-west corridor, which includes the Wanneroo and Joondalup local government areas, dominated the new land market in the September quarter, with a 26.6 per cent share of sales in Greater Perth.
The south-west corridor was not far behind, with a 26 per cent share of sales primarily occurring in Cockburn, Kwinana and Rockingham.
The most expensive area for new land was Joondalup with an average price of $503,714, about $907 per sq m.
The most affordable location for new land was Rockingham with an average price of $176,974 or $496 per sq m, however Serpentine Jarrahdale was cheaper for price square metre at $444 per sq m.
The area with the highest level of lots under construction was the north-east metro corridor, in particular the City of Swan.