Outcome

This indicator shows land costs compared to median house sale prices in Perth and explains how the Department influences cost of land and keeps it affordable by the allocation and management of land supply to remain at 50% or less of the median property prices. This produces a significant economic benefit to the community.

In places where demand outstrips supply, land prices are a major contributing factor to the increase in established dwelling prices. Where prices increase beyond the level of general affordability there are negative social consequences.

The Department directly affects median land prices by ensuring that there is sufficient stock of approved land suitable for development or redevelopment.

Similarly, by encouraging the reuse of existing infrastructure, the Department minimises flow on costs from infrastructure provision to land prices. By monitoring demographic trends, projecting population growth and matching this with developers' intentions, the Department plans and manages the growth of Perth.

The above measure demonstrates that although established house prices have risen, the land component (which the Department influences) has risen at a slower rate and is below the 50 per cent target. The figures for the above measure have been sourced from the REIWA publication Market Update.

Read More...
Read more about Land Prices under Effectiveness Indicator 3: Property and Land Prices are Relatively Affordable.

< Previous Page  |  Next Page >