Suburb named as development hub
One Perth suburb has been ranked as the most popular for development activity, though prices have fluctuated over the past decade, according to the REIWA.
Baldivis, in the city’s south, has been identified as the number one suburb for land development and land sales, according to REIWA executive manager of research Stewart Darby.
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The suburb was also ranked as the number one suburb for first home buyer activity and number two for established house sales.
However, lot prices have varied dramatically over the past 10 years.
REIWA data shows prices for vacant land climbed from $91,500 in 2003 to $235,000 by June 2007, then fell back to $175,000 by June 2009 as the GFC took effect.
Mr Darby said prices were now beginning to climb again.
“Today, land prices in the area have recovered, but have not yet returned to the highs of 2007, with the latest June quarter median for the area sitting at $225,000,” he said.
Mr Darby said the suburb had been prone to volatility due to high levels of speculation.
“One of the more interesting features to come out of Baldivis’ ten-year data analysis is the significantly greater level of land sales compared to final lot approvals between 2003/2004 and 2005/2006,” he said.
“This was due to a high level of speculative reselling, which saw lot owners in Baldivis take advantage of rapidly rising land prices.”
However, he believes the market is now stabilising.
“In the post-GFC era there has been more orderly and increasing activity without the speculation, with land prices hitting an affordability ceiling lifting Baldivis back to the top of the pile,” he said.
