Perth's Property Market Booms as Land Sales Shatter Records
The demand for new housing in Perth has reached unprecedented levels, with the latest data revealing the highest number of new land sales ever recorded in a single quarter. This surge underscores a critical and urgent challenge for housing supply in Western Australia's capital.
Soaring Sales and Shrinking Supply
The Urban Development Index from the Urban Development Institute of Australia (UDIA WA) for the September quarter delivered staggering figures. The data showed an extraordinary 3,683 new lot sales. This represents a massive 51.5 per cent increase from the previous quarter and is 57.9 per cent higher than the sales recorded during the same period last year.
On the flip side of this booming demand, the available supply has plummeted to critical levels. As of September 30, only 393 lots were recorded on the market. This is a dramatic 54.9 per cent drop compared to the previous quarter, painting a clear picture of a market where demand is drastically outstripping supply.
Prices Skyrocket as Demand Intensifies
As sales volumes hit record highs, the cost of land is following a steep upward trajectory. The average price of a land lot has now reached $377,535. This figure is 8.8 per cent higher than just one year ago and a staggering 50 per cent higher than two years ago, when the average price stood at $250,965.
These significant price increases are a direct symptom of the intense pressure from high demand meeting critically tight supply. UDIA WA President Grant Shepherd highlighted that powerful demand drivers are fuelling this trend, including strong population growth, continued economic expansion, and government financial support for buyers, such as the Federal Government's Help to Buy Scheme.
Development Hurdles and Government Response
While developers are striving to bring new land to the market, the industry faces significant constraints. A lack of enabling infrastructure, along with complex environmental and planning hurdles, continues to slow down development. These delays can blow out timeframes and put even more pressure on housing affordability for Western Australians.
Geographically, the growth was most pronounced in the north-west corridor, with the City of Wanneroo accounting for 36 per cent of all new sales. The south-west corridor followed, contributing 21 per cent of the sales for the quarter.
In response to the crisis, the State Government has taken steps to address the housing challenges. Positive initiatives aligned with UDIA WA's advocacy are underway, including the Housing Enabling Infrastructure Fund, the Housing Innovation Fund, and the transition of Keystart to a Government Trading Enterprise. Despite these actions, industry leaders stress that more collaborative work with all stakeholders is essential to deliver the housing that Western Australians need now and for the future.
