Wanneroo drives boom

Urban Development Institute of Australia (WA) senior economist Tim Connoley said one in four lots sold across the Perth and Peel regions in the first quarter of 2013 were within Wanneroo’s boundaries.

‘The north-west corridor (which includes the City of Wanneroo and City of Joondalup) remained the most active region for land development in the March quarter, driven by activity in the City of Wanneroo,’ he said.

Mr Connoley said developers were bringing land on to the market earlier to keep up with demand.

‘The number of lots brought on to the market in the City of Wanneroo during the March quarter was up 49 per cent compared to 12 months ago (averaging 52 lots each week during the March quarter),’ he said.

‘Increased land development, and subsequently sales, was in part driven by activity in Alkimos-Eglinton area, which is expected to accommodate another 20,000 people over the next 10 years.’

On average, lots across Wanneroo sold for $219,000 while in the City of Joondalup, the average price was $469,000, which Mr Connoley attributed to the number of coastal lots available.

Land developers brought forward new land releases in the March quarter to help meet increasing demand for new dwellings in Perth.

UDIA WA chief executive Debra Goostrey said despite the early land releases, which averaged 200 lots across the region each week in the March quarter, supply was not keeping up with demand as developers sold on average 225 lots a week.

‘Despite land developers bringing on to the market lots at their fastest rate in seven years, demand is outstripping supply in Perth,’ Ms Goostrey said.

Ms Goostrey said that while there were three times as many lots available than during the peak of the boom in 2006, the development industry was facing significant hurdles and Perth might face land shortages within the next 12 months.