Celsius Land – February Update 2021
Current Land Market
2021 looks to have continued where 2020 left off on the land sales front, with a sound and more sustainable sales rate continuing into 2021 following the sales boom in mid-2020. This sales rate is despite the $20,000 State Government Building Grant having ended, however a further test to the market will occur in April 2021 when the $15,000 Commonwealth Building Grant finishes. The land market is continuing to be driven by a shortage of homes available for sale and rent. This shortage is expected to continue to sustain the land market over the short term until many of the stimulus homes are completed over the next 12 to 18 months.
Land Outlook
With vaccines now being rolled out it is interesting to look ahead at what this means for Western Australia. Qantas have announced that they are planning for the Trans-Tasman bubble to commence in July 2021 with travel to the rest of the world from November 2021, in line with the completion of Australia’s vaccine rollout. If this occurs it will present a significant opportunity for our country, and in particular Western Australia, as a tourism and immigration destination. There are very few places in the world that have handled the pandemic as well as Australia, so international travelers will have confidence to immigrate here on the expectation of Australia being a safe place. There is no doubt that the current strength of the Western Australian economy and housing market will continue to fuel the house and land market over the short term, however the recommencement of immigration will be integral to sustaining the house and land market over the medium to longer term. The Western Australian building and land sectors rely heavily on population growth, with new land fundamentally only being required for natural population growth and to cater for migration and immigration to Western Australia. In this regard the success of the vaccines, particularly on future Covid-19 variants, will be critical to the Western Australian land market.
Celsius Land Operations
Celsius Land has now commenced the town planning process for the Arabian Court development in Champion Lakes, working with a neighbouring owner to prepare a Local Structure Plan over the broader area. In this regard, a proposal has been submitted to the City of Armadale to confirm the area of the Local Structure Plan which is expected to be agreed in early March 2021, before the Local Structure Plan is prepared and lodged.
Celsius Land also continues to project manage the planning and development of a number of Over 55’s lifestyle villages for the Providence Lifestyle Group. The first of these villages in Piara Waters is progressing quickly with construction due to commence in April 2021. It is only upon visiting one of these villages that I have come to understand the great lifestyle and community these villages provide for their residents and the important part they play in providing an affordable product to the market.
Lastly, Celsius Land continues to look for new land development sites in metropolitan Perth and regional Western Australia. There is no doubt that competition for development sites has increased, with national developers having a renewed interest in acquiring developments sites in Western Australia for the reasons outlined above. Celsius Land will continue to take a conservative approach regarding future development sites, ensuring the use of appropriate assumptions for the current environment in targeted locations.
If any of the above is of interest to you please contact Brenton on 0467 006 122 for further information.
Regards,