May 2023 Celsius Land Update
Project Updates
The Arabian Court (Champion Lakes) subdivision approval issued in May 2023 with the subdivision conditions currently being reviewed. The feasibility is also being reviewed in line with the subdivision approval before a decision is made on proceeding with the engineering design.
At Jayes Road (Piara Waters) the stage 1 earthworks are progressing well and are due for completion in August 2023. The civil design for stage 1 is now complete and is expected to be tendered in June 2023 with civil works expected to commence in September / October 2023. Due to construction timelines the sales release is now expected to occur in September / October 2023, closer to titles issuing.
In Exmouth Celsius Land is project managing the construction of 24 apartments and villas which are leased to Petroleum Helicopters International (PHI). Stage 1 of the project is complete and stage 2, consisting of 11 apartments and villas, is progressing well and due for completion at the end of July 2023.
In Dunsborough East, Celsius is project managing the development of 26 hectares of land which has been identified for urban development. From 25 – 27 May 2023 Celsius participated in community consultation for the site in conjunction with surrounding land owners. The consultation gathered valuable feedback from the Dunsborough community regarding the type of development it would like to see. Further feedback is being sought from the Dunsborough Reference Group over the coming weeks, with an initial concept plan to be prepared following this.
Market Conditions
The Urban Development Industry (WA) reported sound land sales volumes in May 2023, being similar results to previous months. Unlike the capital cities on the east coast of Australia, land prices in Perth have continued to remain stable. Whilst the median lot prices in the eastern states capitals grew strongly in 2021 / 2022; this growth has not occurred in Perth.
The building and development industry is currently digesting the new Medium Density codes issued by the Western Australian Planning Commission which will impact housing in greenfield developments, not just medium density development. The medium density codes will impact each R-Code and lot orientation differently. At a high level however it is expected that the new codes will result in smaller housing footprints with site coverage reducing on many lots from 70% to 50%-60%; increased front setbacks and an increased focus on solar design. Celsius will have a better understanding of the impact in the coming weeks, including transitional arrangements leading up to September 2025.
Regards,
Brenton