New business achieved by Celsius Land
April has been a busy month for Celsius Land. Over the month the business achieved:
- Planning approval for an 80 lifestyle village in Furnissdale (near Mandurah) that it is managing;
- Awarded a contract to commence construction of the first stage of a 245 home lifestyle village in Piara Waters that it is managing; and
- Confirmed the Local Structure Plan area for the Champion Lakes residential subdivision with the adjoining owners and City of Armadale, allowing for the Local Structure Plan to now be prepared and lodged.
The house and land market has taken the removal of all government stimulus in April 2021 in its stride with sales continuing to be strong. High activity levels are continuing including home building approval levels increasing again in February 2021 and increased construction activity for both land development and housing.
This increase in construction activity is having an impact on construction costs and labour supply. In particular, a current shortage of truck drivers in Western Australia has been impacting land development construction time frames as well as many other industries across the state. We can expect ongoing cost and time pressures in the construction industry over the next 12-18 months as more homes continue to be built.
Similarly, we also expect to see upward pressure on land prices now that all government incentives have been removed from the market. The shortage of housing in WA remains and strong economic activity is providing the market with confidence. Over the medium term it will still be important for immigration levels to increase for the ongoing demand for new homes.