Sales go down but still strong

Nevertheless, estates in the City of Wanneroo were responsible for more than 22 per cent of residential land sales in the metropolitan area.

Surveying 15 estates within the City, UDIA found they collectively sold 603 lots, worth $141.3 million.

‘After increasing strongly in the first three months of 2013, the north-west corridor experienced the largest decline in sales volumes of all Perth growth regions, down 18 per cent in the June quarter,’ the August report said.

‘Despite the decline, sales volumes in the corridor were 30 per cent about the five-year average.

‘While eight developments experienced increased sales (six by more than 20 per cent) over the June quarter, a number of larger developments did not have sufficient stock to maintain strong March quarter sales volumes.’

It said only one development sold more than 100 lots, and the average lot price in the City increased by $15,000, which it attributed to the release of higher-priced coastal lots.

‘Alkimos was the most popular suburb, according to preliminary settlements data,’ the report said.

‘Alkimos and neighbouring Eglinton (the seventh most popular suburb) are undergoing a rapid transformation, with the area expected to accommodate another 20,000 people over the next 10 years.

‘Butler ” a popular first-home buyer destination ” was the second most popular suburb in the north-west corridor.

‘The average house and land package was estimated at $367,000 in Butler ” the lowest of the top 15 land hotspots in the north-west corridor.

‘Rounding out the top five popular suburbs for land sales were Landsdale, Banksia Grove and coastal suburb Yanchep.’

UDIA (WA) chief executive Debra Goostrey said developers were working as quickly as possible to bring forward planned stages, but releases in Perth were being snapped up.

‘A lift in first-home buyers and declining mortgage rates lifted new- land sales over the last 18 months, leading to a significant reduction in stock,’ Ms Goostrey said.

‘Developers brought 61 per cent more lots to the market in 2012-2013 compared to 2011-2012, but supply has been unable to keep up with demand.’