George Cash

George Cash

-

    Figures show residential land has become more affordable

    8/03/1996 12:00 AM
     

    8/3/96

     

    While Perth residential land prices have fallen by 4.9 per cent to a median price of $58,000 in the 12 months ending December 1995, over the past three years prices have shown an average increase of almost 11 per cent per annum.

     

    Figures released today by LandCorp, the Western Australian Government's land development arm, show residential land has become more affordable while at the same time there is a clear trend to smaller lot sizes.

     

    It is the first time LandCorp has compiled median land price figures. Figures will now be provided every six months to give advice on land price performance of various regions.

     

    Lands Minister George Cash said LandCorp and the local land development industry had managed to achieve a balance between land supply and price affordability and should be congratulated.

     

    "These figures also show Western Australians are changing their attitudes to lot sizes by opting for smaller-sized blocks - which have fallen over the past three years from 700 m² to 646 m² - but in better planned developments," he said.

     

    The figures, compiled with the assistance of the Valuer General's Office, are based on over 35,500 residential land sales in the metropolitan area between July 1992 and December 1995.

     

    "The increase in affordability of residential land from the cyclical peak in 1994 is good news for land buyers and prospective homeowners," Mr Cash said.

     

    "However, the investment value of land is still very sound.

     

    "In the three years since 1992 when the housing cycle was at a low point, median land prices have shown an average increase of almost 11 per cent per annum.

     

    "Over this same period, the standard and quality of new estates has risen appreciably, which has been a further factor reflecting in higher land values."

     

    Focussing on the four metropolitan growth sectors, the LandCorp statistics show the North-West (Wanneroo) generally has the highest valued land at $60,000 per lot, representing an average annual growth rate of 9.7 per cent.

     

    The South-West (Cockburn, Kwinana, Rockingham) is rapidly narrowing the gap with a median lot value of $55,000 and an average annual growth rate of 17.9 per cent over the three-year period.

     

    MEDIAN LAND VALUES AND LOT SIZES

     

    SECTORS

    DECEMBER 1992

    DECEMBER 1995

    ANNUAL GROWTH

    North-West

    (Wanneroo)

    $45,500 (701 m²)

    $60,000 (618 m²)

    9.7 per cent

    South-West

    (Cockburn,Kwinana

    Rockingham)           

    $33,500 (703 m²)

    $55,000 (680 m²)

    17.9 per cent

    South-East

    (Gosnells, Armadale,

    Serpentine-Jarradale) 

    $35,000 (680 m²)

    $50,000 (630 m²)

    12.6 per cent

    East

    (Kalamunda,

    Mundaring, Swan)

    $37,000 (601 m²)

    $52,750 (652 m²)

    12.6 per cent

    Total Metropolitan

    $42,500 (700 m²)

    $58,000 (646 m²)

    10.9 per cent

     

    Note: Figures in brackets are median lot sizes.

     

    "The growth in land values in the South-West sector reflects some excellent new waterfront estates and opening up of areas for development with the expanding transport network," Mr Cash said.

     

    "New high standard estates around Southern River have similarly influenced the rise in values in the South-East sector."

     

    Mr Cash said the increase in lot sizes in the Eastern sector reflected the rural lifestyle appeal of this area.

     

    Contact: Julie Cameron at LandCorp on 400 7499.

     

    NOTE: Copies of the new LandCorp publication LandAnalyst can be obtained by telephoning LandCorp on 400 7499.