“We have touchdown”
No good news for the Perth land market other than the market has clearly hit the bottom. The market is still dealing with the issue of low levels of population growth, a struggling established housing sector and a building sector eager to push land prices lower. The question now is how long will the Perth land market remain at the bottom? Outlook With land sale volumes now at the bottom. Production levels are now at the right level and lot prices having retreated to a safe position, it is plausible to think that the market may be entering a new phase. This new phase is not one where land sale volumes rebound with gusto or land prices begin to increase, but simply one where things do not get any worse. It could be argued that the 12 month outlook for the Perth new land market will look a lot like what it does now. Low trading volumes slowly moving back to the mid 600’s per month while land prices remain flat. The product offering will act as a brake, however well placed land product should do better than the average. Well placed product, meaning, product with good access to beach and lifestyle amenity; attributes that cannot easily be generated but are a factor of geography rather than construction. Behind the rise and fall of the Perth land market is and will be population change. The Perth market will need to see a dramatic improvement in the number of people wanting to call Perth home before land sale volumes improve.