Land sales, prices increase in December quarter 2017

Land sales, prices increase in December quarter 2017

POSITIVE market news in the December quarter 2017 was not confined to the housing market, with land sales recording a 4 per cent increase over the period according to the latest figures from the Urban Development Institute of Australia (UDIA WA).

Chief executive Allison Hailes said given the month of December could be subdued due to the holiday season, the growth over the quarter was a promising reflection of a market recovery.

Prices also increased during the quarter, with new land values rising a moderate 0.5 per cent to $235,941.

“The average price of land in Perth and Peel has increased for three consecutive quarters and reflects the incremental growth that the region is experiencing as confidence returns to the market after a period of uncertainty,” Ms Hailes said.

Allison Hailes.

The North West metropolitan area was a standout performer recording 29.3 per cent of sales across the entire Perth region.

“The North West corridor, incorporating the cities of Joondalup and Wanneroo, has recorded significant sales numbers as that area continues to attract buyers due to the availability of affordable land in well serviced locations,” Ms Hailes said.

“The promise of the rail extension to Yanchep would also be a big attractor for new home buyers in that corridor.”

Average land prices in Wanneroo ($214,327) were less than in the overall Perth region.

Prices in the North East corridor rose 8 per cent to $247,389.

This region had 24 per cent of land sales in the December quarter.

“The North East corridor primarily represents sales in the City of Swan where new developments include master-planned communities that provide residents with amenity, shops and services within the local area,” Ms Hailes said.

“These factors are a big draw card for buyers.”

South of the CBD, the cities of Armadale, Kwinana and Rockingham continued to record strong sales numbers.

The City of Rockingham had the cheapest land available in Perth with an average price of $184,178.

Ms Hailes said it was an opportune time to buy land.

“Given we are at the beginning of this new market cycle, now is potentially a great time to buy into the new land market,” she said.

“All indicators are pointing to a pickup in demand for land moving forward and that is likely to go hand in hand with further price increases during 2018 and beyond.”