January 2024 Celsius Land Update
In December 2023, the Australian Bureau of Statistics released its June 2023 population figures. Western Australia’s net population growth for the June 2023 quarter of 36,683 people was significantly lower than the March 2023 quarter (48,864 people, the highest growth ever recorded for Western Australia), however on a seasonal basis the June 2023 population growth was the strongest population growth for a June quarter ever recorded in Western Australia.
Similarly in November 2023 we reported that there were less than 5,000 properties for sale in Perth, a 30 year low. Two months later there are 3,860 properties for sale (REIWA, 29/1/24) . Whilst there may be a seasonal element to this; it is a very low figure, being 45.9% lower than 12 months ago. The December 2023 quarter was marked by a significant reduction in land lots for sale with many projects across Perth increasing their pricing. Most land developers have very limited or no stock available due to strong recent sales.
The land market is also being driven by strong value growth of established homes in the growth suburbs, with established prices increasing in the order of 20% in 2023 in many of these suburbs. Combined with a stabilisation in construction costs for new homes in 2023 (2.3% increase over 2023) this is providing headroom for further increases in land values in 2024.
As highlighted by the statistics above Western Australia is experiencing strong population growth, low housing supply, stabilised building costs for a new home (for now) and higher established housing values; which combined are likely to put pressure on land values in 2024.
Project Update – Lot 102 Arabian Court, Champion Lakes
Celsius is soon going to tender for the stage 1 civil works. A decision on construction will be made on receipt of these tenders. The subdivision design has been amended to increase the number of residential lots from 69 lots to 72 lots in response to market demand. Signage has been installed on the project with registrations of interest being taken for the first stage. Further marketing collateral is now being prepared in preparation for a sales release in mid 2024.
Project Update – Jayes Road, Piara Waters
Sales at Jayes Road Piara Waters are continuing with 34 of the 41 lots in stage 1 sold to date. There are 4 lots remaining on the market with the final 3 lots in stage 1 to be released to the market in February 2024. Construction works in stage 1 are progressing well with the servicing nearing completion and roadworks soon commencing. Completion of the stage 1 civil works is due at the end of March 2024, which will be followed by the landscaping of the stage 1 public open space. Celsius is in discussions with the stage 1 civil contractor regarding progressing to construct the civil construction of stage 2, which consists of 43 residential lots. A sales release for stage 2 is due in mid 2024.
Regards,
Brenton