Moderate rise in land price a good sign
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.