Celsius Land Update June 2022
Market Conditions
The civil construction industry continues to experience labour and materials shortages with costs continuing to rise. There are reports of significant delays for certain trades, with labour being attracted away from the industry to work on larger infrastructure and mining projects. Approvals are also taking longer with many authorities currently short staffed. Costs are continuing to increase at a faster pace than land prices (which are also increasing), in part due to the increasing costs to build a house on vacant land. Increasingly buyers are now buying land on the basis they will enter into a build contract at some point in the future; when they expect building costs and timeframes will have reduced.
The shortage of housing in Western Australia has also continued. The land industry relies on population growth; which is expected to grow now that borders have reopened and with Western Australia having excellent employment opportunities. This is expected to continue to put upward pressure on the price of established homes and, in turn, land prices.
Lot 102 Arabian Court, Champion Lakes
On 27 June the City of Armadale considered the Arabian Court Local Structure Plan (LSP) at their Council meeting and resolved to recommend its approval to the Western Australian Planning Commission (WAPC) subject to a number of amendments, none of which materially impact Lot 102. Celsius will now finalise the subdivision application for Lot 102 for lodgement with the WAPC. Before proceeding with the engineering design Celsius will obtain an updated cost estimate for the project in light of current market conditions.
Lot 9012 Jayes Road, Piara Waters
The LSP for the project has now been reviewed and accepted for consideration by the City of Armadale who will proceed with advertising of the LSP to the public. Celsius has also lodged a planning application for earthworks approval with the City of Armadale to provide the option of bringing fill to the site, should suitable and affordable fill become available in the coming months.
Regards,
Brenton