Perth’s property developers are responding to unprecedented demand for house and land packages as Western Australians take advantage of low interest rates and government support to move out of the overcrowded rental market.
REIWA figures show Perth’s rental vacancy rate remained below one per cent in the March 2021 quarter – while median rental prices have been on the rise since June 2020.
At the same time REIWA President Damian Collins last week reported Perth’s median house price exceeded $500,000 for the first since December 2018, according to the latest reiwa.com data.
The secure housing market, tight rental market and record low interest rates have resulted in a strong demand for house and land packages, with leading WA-based developer Peet responding by releasing extensive new stock to the market.
In the last few weeks Peet has released new product at its Burns Beach, Golden Bay and Lakelands communities, while a new stage is due to be released at Brabham this month.
Peet Managing Director and CEO Brendan Gore said the number of first homebuyers investing in Peet communities in the last quarter was significant.
“In the last three months more than 82 per cent of buyers across our communities, excluding Burns Beach, were first homebuyers,” he said.
“There has arguably never been a better opportunity for first homebuyers to enter the market – the combination of low interest rates, State and Federal Government incentives and the money people are saving on overseas travel is fuelling strong demand.
“I also suspect the COVID-19 pandemic has led people to stop and consider their priorities and their future and recognise that homeownership provides security and flexibility.”
Located just 30 minutes north of the Perth CBD on a pristine stretch of coastline, Mr Gore said Burns Beach bucked the first homebuyer trend due to its overwhelming popularity with families and retirees. The last quarter saw more than 90 per cent of sales in Burns Beach from owner-occupiers who were not first homebuyers.
“We are fortunate at Peet to provide prospective homeowners with a range of options and locations to suit their needs – whether that be on the coast, in the CBD or among the peace and quiet of native bushland,” he said.
REIWA’s latest figures showed Secret Harbour, on Perth’s south coast, experienced one of the biggest median housing price increases in the state in April. Peet’s community of Golden Bay is directly adjacent to Secret Harbour, with buyers benefiting from the halo impact of the increased interest in that area.
“As a result, we have just partnered with Homebuyers Centre to release new exclusive double-storey packages located only 400m from the beach and the Shipwreck Cove playground at Golden Bay,” Mr Gore said.
“Slightly further south in Mandurah we have also responded to demand by making available new stock at our Lakelands community. The lots are only three minutes from the beach and the release was moved forward several weeks due to demand.”
The REIWA figures also showed high demand and an increase in the median sales price in the north-eastern suburbs, which Mr Gore said aligned with interest in Peet’s Brabham and Avon Ridge communities.
A new release is also planned for Peet’s six-star green star Brabham community this month – 20 minutes from the Perth CBD. This will be the fourth stage released at Brabham in just 14 months and comes just weeks after the official opening of the new Brabham Primary School.
“In fact, Brabham is perhaps the best example of how today’s homebuyers are moving away from rentals,” Mr Gore said. “They can see the lifestyle benefits of building and owning their own home in a great area with plenty of surrounding amenity.
“With the Swan Valley on your doorstep, and the opportunity to build a home that meets exceptional sustainability criteria and suits your precise needs, Brabham is really resonating with those first homebuyers looking to take advantage of the current climate.”
Take advantage of record low interest rates and government support to get into the housing market.