October 29th, 2018, 02:00PMWritten by Staff Writer Eastern Reporter
.LAND in Perth is amongst the cheapest in the country according to the latest data from the Urban Development Institute of Australia (UDIA WA).
The average price of new residential land in Perth was $225,578 in the September quarter, down 2.3 per cent on the previous quarter and 3.9 per cent over the year.
It was cheaper than Melbourne, Sydney and Brisbane and on par with Adelaide.
“The new land market in Perth has seen significant price reductions in recent years,” UDIA WA chief executive Allison Hailes said.
“Given current market conditions, there are some very affordable house and land packages available to buyers.”
While the current downturn has lasted longer than expected, Ms Hailes said there was a light at the end of the tunnel.
“The State of the States report released by CommSec today shows that while WA’s economy has been one of the worst performing, there are green shoots emerging that are reflected in mining activity and growing full-time employment,” she said.
Perth’s northern regions, including the cities of Wanneroo, Swan and Joondalup, continued to attract the largest proportion of new home buyers.
“The northern corridors provide affordable land in proximity to the coast in the west and natural bushland in the east,” Ms Hailes said.
“Public transport connectivity will be improved even further under Metronet with the extension of lines to both Yanchep and Ellenbrook.
“The recent government announcement that a significant parcel of land in Henley Brook has been rezoned to urban will also open up further opportunities in the north.”
The average price of land in the September quarter in the City of Wanneroo was $217,861 and $234,518 in the City of Swan.
*Figures for Joondalup based on a small number of sales.While the northern corridor was proving popular, the southern regions offered greater affordability.
With an average price of $171,000, Rockingham had the lowest average lot price in the southern region.
Ms Hailes said it offered exceptional value for money given its proximity to the coast and employment centres.
“Long-term employment prospects for the region look particularly healthy with the State Government establishing the Westport taskforce to investigate the feasibility of creating an outer-harbour in Cockburn Sound,” she said.
“This sort of project is expected to result in significant new job creation for the area and attract significant investment.
“The establishment of a $700 million lithium processing plant in Kwinana is creating some 400 construction jobs and will involve 150 ongoing jobs during operation, with the plant scheduled for commissioning in late 2019.”
Ms Hailes said the southern metropolitan region provided an attractive lifestyle option for young families, with excellent connectivity provided by the existing rail line and freeway.
“This is set to improve further with the Thornlie-Cockburn link that will enhance east-west connectivity across the area with the proposed stations at Ranford Road and Nicholson Road greatly improving access to the Canning Vale employment centre.”
The average size of lots in the Perth metropolitan area remained steady at 387sq m for the September quarter.
“Developers are continuing to look at ways to deliver greater diversity to the market,” Ms Hailes said.
“Lot sizes in many areas now range from as little as 100sq m through to the more traditional 400-500sq m.
“This is a reflection of the changing demographics in Perth home buyers, with the need to cater for younger singles and couples, families and older people looking to downsize.”