An exciting year ahead for Celsius Land
Celsius Land is pleased to announce it has finalised its first acquisition, being a 65 lot development in Champion Lakes which is located in the City of Armadale. The capital raising closed on 18 December 2020 oversubscribed. We were very appreciative of the supports from our investors and are now looking forward to a successful project with Structure Planning to commence immediately and construction forecast to commence in June 2022.
Following strong land sales in 2020, Celsius Land expects the land market is expected to moderate in the first half of 2021 with the $20,000 State Government building grant having ended on 31 December 2020 and the Commonwealth Building Grant having reduced from $25,000 to $15,000 on 31 December 2020 before being due to end on 31 March 2021. It is expected there will be a period of adjustment over the next 6-12 months whilst the market digests the changes to these rebates and the current spike in building costs due to the high number of homes to be built in 2021.
Importantly, the established real estate market has come back strongly in January 2021 with properties selling quickly above expected asking prices. A strong established market is important to ongoing land sales as the cost of a house and land package needs to represent fair value compared to the established market. Based on this and the strength of the Western Australian economy we expect the land market will perform well following this period of adjustment.