The outlook is positive for the Perth land market, according to the Housing Industry Association.
The HIA’s latest report for the June 2016 quarter paints an upbeat picture for Western Australia, with land sales increasing for a second consecutive quarter.
In the June 2016 quarter, Perth saw lot sales rise 21.2 per cent month-on-month, with an estimated 2,457 residential lots sold being transacted in the city.
“The sales volume was 15.8 per cent higher than a year ago,” says Executive Director of the Housing Industry Association, John Gelavis. “Of the four regional markets in Western Australia covered within the Residential Land Report, only the Kimberley region experienced a reduction in the number of lot sales during the June 2016 quarter.”
The median lot price increased slightly by 1.2 per cent in the June 2016 quarter to $263,000.
“Relative to the declines in the median price of established homes in Perth over the last year, it is a little surprising that residential land prices have continued to rise in the city, however for households looking to build, the situation is actually positive, with the median residential lot price remaining stable,” continues Mr Gelavis.
“Land sales are an important leading indicator for new home building. The consecutive quarterly increases are a good sign, which we hope will translate into an actual increase in new home building activity,” he adds.
Indeed, one recent launch in Perth is Enclave, a development of 65 luxury units located in the free transport zone near the CBD.
Living up to the optimistic land sales figures, a number of new infrastructure projects are taking place in nearby areas to East Perth. Projects such as Perth City Link, Elizabeth Quay, the new Museum and Burswood’s Perth Stadium are expected to boost the livability, vibrancy and urban benefits for residents in the area. With a young population and a high proportion of professionals renting, the market has the fundamentals of a market that appeals to local and international investors alike, which could spur new build activity.
Enclave is open to investors now from AUD 420,000, with construction on the development set to complete in Q2 2017.Google+