Perth land supply low

PUBLISHED: 05 Mar 2013 PRINT EDITION: 05 Mar 2013 Gift Article: 100

Duncan Hughes Land supply is a growing concern in Perth because lot production has fallen about 11per cent during the past 12 months, despite an improvement in demand for houses, according to the Urban Development Institute of Australia. About 9600 lots were produced during the 2011-12 financial year, compared with a peak of more than 16,000 about seven years ago, amid a cautious recovery. Median prices in Perth have been hovering at about $220,000 for the past three years, the UDIA State of the Land Report found. This suggests developers are sceptical that the upturn has been strong enough to justify higher lot production, the report said. But there are concerns the industry might not be able to respond to a sustained recovery because lots are being provided for immediate demand, rather than adding to stocks. The UDIA concluded that the planning approvals system had failed to display that it could respond quickly and efficiently to increased demand, particularly plugging gaps in infrastructure when mining companies were competing for labour and capital. Other issues include failing to allow new water providers to enter the market, lack of infrastructure investment and not resolving critical shortages in raw materials. The Australian Financial Review

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