RetailWed 15 Aug 18

Perth Land Sales Increase As Economic Growth Boosts Buyer Confidence

New data from the Western Australian division of the Urban Development Institute of Australia (UDIA) indicates that Perth's housing market continues to recover on the back of improved economic conditions.

Rising buyer confidence has contributed to an almost 4 per cent increase in new land sales for the June quarter, according to Allison Hailes, UDIA WA CEO.

“New land sales in Perth are up 3.8% for the June quarter with close to 1,500 lots sold in the region,” Ms Hailes said.

According to Ms Hailes, buyers are recognising the current value for money that they can achieve.

Western Australia's economy has suffered significantly since the slowdown in mining created by the end of the mining construction boom, however signs of life in the housing market point to the early stages of a recovery.

Average new lots sold in Perth were down a 1.7 per cent for the quarter to $230,825, however a lift in sales volumes, combined with declining developer stock levels, suggests this trend won't continue to long.

The North Western corridor, comprising of the City of Wanneroo and Joondalup, dominated the market with 32% of all sales in Greater Perth.

Average land prices for Wanneroo and Joondalup were $228,297 and $213,577, respectively.

Deloitte Access director Chris Richardson told reporters recently that it was clear Western Australia was recovering from the end of the mining boom.

He cited an increase in retail sales, population growth, wages and housing construction as a contributor to accelerated economic growth in 2019-20.

Residential Australia Real Estate Sector