Land sales fall in the north-west

Land in the City of Joondalup at Burns Beach is being transformed into housing estates.
Land in the City of Joondalup at Burns Beach is being transformed into housing estates.

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

Surveying 15 estates in 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 above 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.

In the City of Joondalup, it found three estates sold a total of 58 lots, worth a total of $28.1 million.

‘Alkimos (in the City of Wanneroo) 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 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 fast as possible to bring forward planned stages, but releases in Perth were being snapped up quickly.

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

‘Developers in Perth sold the highest number of lots in 10 years in 2012-13.’

Ms Goostrey said she did not expect to see stock levels fall to 2005-06 levels.

‘There is still more than twice as much land available as during the peak of the boom last decade and developers in Perth are expected to increase the number of lots brought to the market in the second half of this year,’ she said.