PERTH NEW LAND MARKET
Latest research from Research4 shows that the volume of new land sales for Perth increased by 20% for the quarter.
This increase is separate to the additional 8 land estates for the quarter (not included in the June result).
The market sold on average 570 new blocks of land per month; net of returns. On that note, returns are still high, however it is now below 25%. Needs to be below 10%. The volume of returns is a good indication as to the likely timing of any major upswing. The market is still digesting past releases, this game playing needs to settle down and then contract back toward 10% of gross activity.
The reason for the returns is not always clear, however the fact that one month a lot is listed as sold and the next it is back on the list for sale indicates that the market is not settled.
Another “tell” has been the length of the average price list for Perth estates. It is not uncommon for estates to be holding in excess of 50 lots as stock ready for sale. Across the whole of Perth, the average estate stock holding is 20 lots per estate. SEQ estates average is 14. Melbourne is a whopping 7.