November 2023 Celsius Land Update
The Perth land market had strong sales volumes and further price growth across the market during November. The residential property market (including residential land) is being impacted by the following unique set of circumstances:
- Net overseas migration to WA in March 2023 quarter (latest reported) is the highest ever recorded for WA (ABS);
- Net interstate migration to WA in March 2023 quarter is higher than any quarter for WA before Covid (ABS);
- Perth dwelling completions sitting below 16,000 per annum since 2019 (didn’t fall below 16,000 in prior 16 years) (ABS);
- There are now less than 5000 properties for sale in Perth; a 30 year low (REIWA).
This has resulted in the residential market becoming very stressed, with multiple offers for most residential homes. Due to this an increasing number of buyers are now returning to look at buying house and land packages; noting residential land prices are relatively cheap compared to existing houses. Additionally interest from investors, particularly from the eastern states, has remained very strong for house and land packages. This increase in house and land sales will continue to put stress on the civil construction and building industries in 2024, which are still struggling to increase their capacity due to their trades being attracted to higher wages in the resources industry.
For Celsius Land, 2023 has been a challenging year in particular due to the many capacity constraints that have impacted the property development industry. It has been a year of many achievements, some of which have taken considerable time, as highlighted in the list below:
- Structure plan and subdivision approval for Lot 102 Arabian Court, Champion Lakes;
- Structure plan, subdivision approval and sales release for Jayes Road, Piara Waters;
- Completion of project management of 24 villas and apartments at 21 Cooyou Close, Exmouth;
- Undertaking of community engagement in East Dunsborough and preparing background studies for the structure plan;
- Continued due diligence on Superlot D in Exmouth.
We are excited about 2024 and overcoming the many challenges that will come our way to continue to play an important part in housing Western Australians over the longer term.
Project Update – Lot 102 Arabian Court, Champion Lakes
Celsius is currently discussing this project with preferred civil contractors before making a decision on whether to negotiate an appointment or go to tender in January 2024. Celsius is also commencing taking registrations of interest for the project.
Project Update – Jayes Road, Piara Waters
Sales at Jayes Road Piara Waters continued in November with 30 lots now sold to date. Construction works are well underway with the sewer works nearing completion and retaining wall construction commencing. Completion of the stage 1 civil works is due at the end of March 2024. Celsius is now preparing for the sales release and construction of stage 2.
Regards,
Brenton