700 is the magic number for Perth
A recent presentation by land guru Colin Keane, has shown that Perth could achieve optimal sales with just a few tweaks to market conditions.
There is no doubt that population growth is a major key to changing the dynamics of the Perth land market and as Colin stated, all we need is 1000 additional people per month in our state to allow us to achieve the optimal target of 700 land sales per month. And the good news is, we are already on our way, with Perth the only state to have grown nationally from overseas migration in the last 12 months with 16% uptake.
Currently selling 420 lots per month, Perth’s median price point of $224,000 is certainly the cheapest when you consider our other cities including Sydney ($468,000), Melbourne ($330,000) and South East QLD ($263,000). It is also interesting to note that Perth’s land prices are undervalued by approximately $6000 while Sydney is overpriced by $70,000 and Melbourne $42,000.
However when also considering Perth in contrast to our counterparts and our median lot size, we appear to be the smallest nationally with our median size 375sqm in contrast to Melbourne (400sqm), Sydney (447sqm) and SEQLD (436sqm). And it is this sameness that is also depressing our market to a certain extent. Variety after all is the spice of life!
For every 100 people employed in Perth we are assured 45 land sales and again this contrasts starkly to the East with the ratio in NSW 14:100 and Victoria 24:100. However as Colin stated, if you consider Geelong which is the 2nd largest land market in the nation, the majority of its land sales growth has not necessarily come from employment, with this centre also reflecting an unemployment rate which is 18% above the state.
As Colin stated, of the extra 1000 people per month in WA, we only need 40% employed and the remaining 60% just need to choose Perth as their preferred home. And with WA creating employment growth 30% above the forecast, all we need to do is become experts in tourism marketing!
As we see it at PropertyESP, Perth needs to start promoting our good news about mining investment ($64 billion committed), our affordable pricing and our great lifestyle and the rest will take care of itself!
We can certainly be the creators of our own destiny and this is very reassuring – because with a concerted effort we can achieve the magical number of 700 land sales per month!
If you like the proactive way that PropertyESP thinks – then you should chat to our team about how we can catalyst your sales with our marketing prowess. Call Sam on 0452 067 117 for an insightful chat!