A lot to love in Perth
House hunters in Perth will be pleased with a recent announcement from Housing Minister Bill Marmion.
The development of 1,200 lots in Midvale and Brabham may help drive down house prices by putting downward pressure on supply.
Paired with affordable fixed home loans, now could be the time to buy in the Western Australian capital.
Multimillion dollar land sale
The Department of Housing made a $46.1 million sale last week, selling two parcels of land. It's anticipated this will yield 1,200 residential lots in eastern and northern Perth, according to Mr Marmion.
ABN Group and Peet Ltd will develop over 600 lots in Midvale, which is located a little over 22 km from the Perth city centre. Meanwhile, in Brabham, Stockland will offer 570 lots, which is sure to please those on the hunt for a new home.
Mr Marmion commented that the sales reflect the success of the government's Affordable Housing Strategy 2010-20.
"This is a big boost to our metropolitan land supply at a crucial time. The state government is delivering affordable land in rapidly growing areas, while also yielding affordable housing outcomes," he said in a June 27 statement.
History may repeat
Stockland, which has acquired the land parcel at Brabham, is no stranger to lot development.
The company has worked with the Department of Housing previously as part of a partnership agreement for the Sienna Wood development in south-east Perth.
Meanwhile, Peet Ltd has previously partnered with the department to deliver Queens Park-based urban renewal project Quattro.
Impact for Perth
While the official cash rate has rested at a low 2.5 per cent since August 2014, some buyers have felt forced out of the market.
Perth-based homeowners with mortgages may find they have better financial leverage to upgrade properties compared to first-time buyers. However, the effect of these recently announced developments are sure to assist a range of buyers.
Image credit: Adam Selwood