Celsius Land – November Update 2021
There is a saying that we overestimate what we can achieve in one year and underestimate what we can achieve in 5 – 10 years. When I reflect on Celsius Land’s first 18 months, I can certainly see some truth in this and how work put in 12-18 months ago slowly builds momentum. Celsius Land is still young and there will be plenty of hard work to put in over the coming years to sustainably grow the business.
We are continuing to work on a regional acquisition we have been shortlisted for and expect to find out whether we, and our business partner, are the preferred bidder in December. Last month I referred to a new acquisition in an established suburb of Perth. I will be able to provide further information on this project in early 2022 after settlement occurs.
Following our submission of the Local Structure Plan to the City of Armadale in September, Celsius Land received comments back from the City of Armadale. We have worked through those comments and the City of Armadale has now advised that they will advertise the Local Structure Plan to the community and to state government departments. This advertising period is expected to run from 2 December 2021 through to 21 January 2022. We are now working on appointing a marketing agent for the project to establish the project website and project marketing strategy.
The Perth land market has remained consistent with sales volumes of approximately 100 lots per week trending up slightly and some modest price growth. A shortage of titled land remains with many projects not due to deliver titled stock until around March 2022. There are ongoing cost pressures in the civil construction industry with reports of shortages in retaining walls, sand supplies being exhausted and trucks (and drivers) being in short supply. These supply constraints are expected to continue into 2022.