Perth Land Sales Doubled In 2020

Perth land sales almost doubled in 2020, spurred on by Government incentives. The Urban Development Institute of WA’s Urban Development Index recorded 10,035 new lots sales last year, compared to about 5200 in 2019. The bulk of the sales occurred in the June and September quarters, with numbers dropping 46% in the December quarter.

While new land sales dipped in the December quarter, they remained much higher than the rolling five-year average of 1,579 lot sales per quarter that was experienced between 2015 and 2019. The dip can most likely be attributed  to the winding up of the stimulus measures which were only available until December 31 2020. With timeframes for building commencement also attached to stimulus eligibility, builders were operating at capacity and some had to close their books for a period to ensure they could meet new home builders needs in securing the stimulus payments this year.

While sales surged, prices remained relatively steady. The average price of new land in Perth Metro was $240,651 in the December quarter, 6% higher than the same time last year. Buyers were most active in the northern corridor with the City of Wanneroo recording 460 sales at an average of $217,000. City of Swan wasn’t far behind with 430 sales averaging $220,000 per lot. When it came to price the City of Rockingham was the most affordable location for new land with buyers paying an average of $181,000.

Perth remained relatively affordable compared with other capital cities and that was good news in attracting more investment into the local market.

Source – Perth Now – 17/02/2021