February 2024 Celsius Land Update
A shortage of land continued to constrain the house and land market in February 2024 with land prices continuing to increase during the month. This is being driven by an increasing demand for house and land packages due to the increasing prices of established homes in growth corridor areas where most land developments are located. These established homes are continuing to regularly sell above asking prices.
The increasing demand for housing is also starting to put renewed pressure on home building costs and civil construction costs with some builders reporting price rises already this calendar year. With increasing labour costs these costs increases are expected to continue to 2024.
In summary we see 2024 as a year of continued strong demand for house and land which will put significant pressure on the capacity of the house and land industry.
Project Update – Lot 102 Arabian Court, Champion Lakes
Celsius is currently tendering the stage 1 civil construction of Lot 102 Arabian Court, with a decision on whether to proceed with construction to be made after tenders close. Engineering approvals are continuing to be pursued with the City of Armadale with a strong focus on tree retention in parks and road reserves. Marketing collateral is now being prepared in preparation for a sales release in mid 2024. The local land market remains strong with very little stock available for sale.
Project Update – Jayes Road, Piara Waters
Sales at Jayes Road Piara Waters are continuing with 38 of the 41 lots in stage 1 sold to date and the remaining 3 lots on hold pending signup. Construction works in stage 1 are progressing well with roadworks underway and completion expected at the end of March and titles expected to issue in May. With the strong sales achieved in stage 1 Celsius is finalising negotiations to appoint a civil contractor for stage 2, with a target commencement date in April 2024. A sales release for stage 2 is due in mid 2024.
Regards,
Brenton