Lots of new lots for WA
The number of new lots created in WA has reached a six-year high, according to Landgate’s January 2015 Business Activity Profile, with the number of new lots created growing by more than 20 per cent in the last 12 months.
The number of new lots created between July 2014 and January has peaked at 18,736, which represents a 23.36 per cent increase from 1618 new lots last January 2014 , to 1996 this year.
Landgate chief executive Mike Bradford said it was encouraging to see the upward trend in creation of new lots, as January was a generally a seasonally quiet time for the property sector.
“Last month’s figure of 1996 is well ahead of the three-year January average of 1478 and a 32 per cent increase on the five-year average of 1511, ” Mr Bradford said.
While the total number of land transactions in January 2015 decreased by almost six per cent, the financial year-to-date total land transactions between 2013/14 and 2014/15 only decreased by 1.3 per cent.
Landgate’s BAP covers all property-related documents lodged within Landgate and provides a barometer of the state of WA’s property market.
Urban Development Institute of Australia WA chief executive Debra Goostrey said the high number of new lots created could be stemming from lots that received final approval from the Planning Commission in 2014, which then go through Landgate for issuing of titles.
“The Landgate statistics are trailing data from the land construction boom that peaked in Perth during 2013, ” Ms Goostrey said. “The market has contracted in some areas over the last six months but remains on track with the rolling five-year average. While likely to remain fairly stable, the recent interest rate fall could stimulate the market, especially if there is a second rate cut before the middle of the year.”
“Apartment and unit building approvals jumped significantly at the end of 2014, so Landgate officers are likely to remain busy during 2015.”
Satterley Property Group chief executive Nigel Satterley said the figures followed the reporting cycle for listed property groups, who are required to report bi-annually and need to create and settle on lots in June and December.
“I expect new lot creation to remain fairly consistent with previous year’s numbers, with more emphasis on new product development, which will continue to address affordability and changing market demand, ” he said.
© The West Australian
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