Celsius Land – May Update 2021
During the month of May, Celsius Land worked on the following:
- Commenced preparation of the Local Structure Plan on Arabian Court, Champion Lakes in conjunction with an adjoining developer.
- Managed preparation and lodgement of a DA application for a new lifestyle village in Henley Brook.
- Commenced civil construction at Piara Waters Lifestyle Village.
We are continuing to see labour shortages in the market which are increasing civil prices and civil construction time frames.
On the land pricing side, we are seeing some interesting dynamics. Over the past 6-12 months buyer incentives (such as cash back at settlement) have disappeared from the market. There has also been some small land price increases, however this has been moving at a slower rate to the established market. The land market has shown to be absorbing higher costs, as the vast majority of land buyers enter into a building contract at the same time as purchasing land.
There is significantly less stock on the market compared to 12 months ago, with the number of lots for sale in Perth having come back to levels not seen since 2014. This lower stock, combined with the tight rental market and low interest rates, is expected to put some pressure on land prices over the next 12 months.
On the acquisition front, there are a number of high quality sites expected to become available during the month of June which Celsius Land will assess closely.