Mod­er­ate rise in land price a good sign

Western Suburbs Weekly - - Liftout: News -

FALL­ING sup­ply has seen the price of Perth va­cant land in­crease 3.7 per cent in the June quar­ter, ac­cord­ing to pre­lim­i­nary fig­ures from the Ur­ban De­vel­op­ment In­sti­tute of Aus­tralia WA.

The av­er­age price of land in the Perth metropoli­tan and Peel area was $232,348, up from $224,033 in the March quar­ter.

“This mod­er­ate in­crease is a sign of pos­i­tive things to come for the prop­erty mar­ket in WA,” UDIA WA chief ex­ec­u­tive Al­li­son Hailes said. “The in­crease in price has arisen hand in hand with a de­crease in the num­ber of lots on the mar­ket.

“Prices de­clined for three con­sec­u­tive quar­ters prior to this in­crease.

“This was due to more stock on the mar­ket and less de­mand for land from con­sumers.”

The num­ber of lots on the mar­ket as at June 30, 2017, was down 9 per cent com­pared with March 31, 2017, in Perth and Peel.

“We are now see­ing stock on the mar­ket re­turn back to more nor­mal lev­els and, in turn, a strength­en­ing in val­ues,” Ms Hailes said.

The North East Metropoli­tan growth cor­ri­dor recorded the big­gest share of sales ac­tiv­ity for the quar­ter with a 28.4 per cent pro­por­tion of all sales.

“The North East cor­ri­dor in­cor­po­rates the City of Swan, where new hous­ing de­vel­op­ments are at­tract­ing new home­buy­ers,” Ms Hailes said. “It is also the most af­ford­able area, with the av­er­age price sit­ting at $219,895.”

The South West Metropoli­tan cor­ri­dor recorded the sec­ond high­est pro­por­tion of sales (27 per cent), with the coastal ar­eas of Kwinana, Rock­ing­ham and Cock­burn all at­tract­ing buy­ers.

“Prices are slightly higher in the South West cor­ri­dor, with an av­er­age cost of $237,133,” Ms Hailes said.

“The av­er­age price in this area would be pushed up by the more pre­mium coastal de­vel­op­ments in Cock­burn in par­tic­u­lar.

“Over­all, Perth prop­erty is be­gin­ning to show signs of re­cov­ery and along with the pos­i­tive eco­nomic re­ports re­leased last month pre­dict­ing broader eco­nomic growth for WA next fi­nan­cial year, we have every rea­son to be hope­ful.” ■

Bush­mead in the City of Swan is Perth’s new­est sub­urb and is be­ing trans­formed into a 600-lot sus­tain­able ur­ban de­vel­op­ment that will in­clude 185ha of con­ser­va­tion area.

Al­li­son Hailes

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.