demand pushes up land prices in Perth
Land prices in Perth are rising, which could lead to strong capital growth for existing lot owners looking to erect a new home building.
Existing homeowners in the Western Australian capital may be in a good position to sell their existing property, in order to upgrade to a new home in upcoming months.
Booming land prices
Perth land prices have reached a "new record high", according to the Housing Industry Association (HIA) in an April 30 release.
This finding comes on the back of the HIA-RP Data Residential Land Report, which outlines the high prices in Perth, with land prices in the area the most expensive in the country on a per square metre basis.
During 2013's final quarter, median prices of land lots in the Western Australian capital increased by 10.2 per cent, making Perth land 5 per cent more expensive than that in Sydney.
John Gelvais, HIA executive director for Western Australia noted that supply pressures in the city's land market are influencing land prices.
Those considering selling up in order to build a new property may find their land increases in capital value over upcoming months and years, which is certainly favourable.
However, it's important that a careful balance is drawn.
"It is vital that state and local governments accelerate the availability of residential land in the region," Mr Gelvais explained.
Residents who already have a foot on the property ladder may find themselves in a comfortable position. Existing property ownership makes it easier to obtain finance for a second property, with lending options such as a construction loan well-suited to a new building project.
Fortunately apg offer a great range of house and land packages at locations across Perth.