- Land sales boosted 35% by increasing buyer confidence
- City of Wanneroo and City of Swan areas with largest sales
- UDIA WA apprehensive of a housing supply crisis, however
Despite land sales across Perth recording a 19% weekly fall towards the end of September, overall demand for new land remains strong according to the latest statistics from the Urban Development Institute of Australia (UDIA).
During the September quarter, new land sales in Perth observed an overall increase of 35%.
Boosted buyer confidence
According to UDIA WA CEO Tanya Steinbeck, land sales increased significantly last year due to building stimulus payments and the trend has continued into the last quarter attributable to a surge in buyer confidence.
Ms Steinbeck said buyer confidence is being encouraged by the state’s consistent economic performance, low unemployment rates and generous lending rates.
“While buyers were scrambling to meet the timeframes for the Federal and State building grants last year, we can see that now that the dust has settled, we have strong underlying demand for new housing that is ongoing even without the incentive of extra cash grants from the government.”
Tanya Steinbeck, UDIA WA CEO
She added that many in the market are choosing to buy instead of rent as the rental crisis continues to push rental payments up.
Although the average price of land has increased 5% in the last quarter and 11% annually to $247,931, Perth is firmly holding its ground as one of the nation’s most affordable cities.
Areas with rising land sales activity
The City of Wanneroo observed the greatest surge in land sales, with a 54.1% increase since the previous quarter and an average price of $235,843.
The suburb of Banksia Grove, as well as the coastal areas of Alkimos, Eglington and Amberton contributed the most growth in land sales activity to the increase seen in the City of Wanneroo.
The City of Swan experienced a 41% increase this quarter and recorded 621 sales, comprising 28% of Perth’s entire land sales.
Housing supply crisis on the horizon
Ms Steinbeck added that while strong demand for land positively points to the health of the state’s economy, UDIA WA continue to have concerns of a looming housing supply crisis.
In the Housing Our Community report published earlier this year, UIDA WA outlined their apprehension of a lack of affordable housing due to barriers to housing planning and construction.
“Maintaining sufficient housing supply is critical to the liveability of our communities, maintaining the competitiveness of our economy and keeping a lid on affordability.”
Tanya Steinbeck, UDIA WA CEO
Ms Steinbeck added that since the report’s release, barriers to delivering new land and housing to the market, as well as issues of skills shortages and material delays, have persisted.
