Government incentives have created a flurry of buyer interest with Perth’s best homesites being snapped up at pre-COVID-19 prices. However, as demand increases and stock dries up, buyers are being warned of inevitable price increases likely to create an impact across the entire homebuilding supply chain.
Since a consecutive string of government announcements introduced homebuilding incentives to stimulate the economy, Perth developers have been working tirelessly to meet new demand from people wanting to take advantage of the incredible savings.
Boutique land developer, Monument, is experiencing this more than most. The company specialises in boutique, high-demand and limited supply landsites located close to the city in established areas.
In the past month, Monument has sold more than 40 homesites across its three estates, and its sales consultants are taking new enquiries on a daily basis.
Monument parent company M/Group Director John Wroth said buyers needed to act fast in order to secure their home and land package before the industry responds to the increased demand.
“The response to the government incentives has been enormous, but the reality is that many developers had been running according to a measured release plan of land stock prior to the announcements, so the best available lots are now simply walking out the door,” he said.
“The process of new approvals is arduous and timely, and in the case of boutique developments such as ours, there is only a limited amount of land we have available.
“While we have no intention of increasing our land prices, other companies will find it hard to avoid the pressure for builders to meet demand through their supply chain, which is likely to impact building costs.
“It is imperative that buyers recognise the extraordinary buying conditions and ensure they are finance-ready to act fast in securing the best possible land package for their new home.”
Monument offered some tips to help you secure the best lots on the market.
1. Bigger is often seen as better
Larger lots continue to prove the most sought-after and, as such, are often in short supply. While it may be easier to secure larger lots in the outer suburbs, value is always going to be on location, so do your homework and buy wisely.
2. Be on the front foot with frontages
Home frontages of 15m or more are rare and popular. They often have a wait list of multiple offers in place, so it is prudent to get in fast and secure one as early as possible.
3. Be finance ready
Make sure you have your finance pre-approved and speak to your mortgage broker or bank before making the commitment to buy a lot. Being prepared not only gives you the buying power to secure the lot you want quickly, it also means you won’t miss out.
4. Secure your building contract now
It is unlikely that Perth will experience better building conditions any time soon, particularly with incentives that could save up to almost $70,000 on a house and land package. It is therefore important to recognise that the cost of building a home is currently based on pre-COVID-19 prices and builders are only able to commit to these prices if you sign quickly.
5. Location is everything
Don’t be bedazzled by low prices in large outer-suburb estates. Your money will work harder and your home will be valued higher in the long-term if your land is surrounded by established infrastructure. You’ll also have the benefit of not having wait years for it to arrive.
6. Don’t settle for second best
Monument offers a range of homesites across three well-located environments at various stages of development.
Atop in Beeliar is currently selling elevated, ocean view and park side lots in Stage 2 and 3 from $304,000, with Stage 4 scheduled for release and ready for titles by November. This stage will offer ocean view lots from $298,000.
The Wedge in Wellard North incorporates a community park, a playground and walk trails, and is surrounded by the natural bushland of Bulrush Park. It has sold out of Stage 1, and will have titles in place for Stage 2 in October. Lots are available from 375-537sqm, with prices starting from $174,000.
Finally, the company’s inaugural land estate, Hamelin Park in Secret Harbour. It is just three minutes from the beach and only has six lots left, which are priced from $194,000.
All Monument land estates are located in well-established suburbs with shops, schools, public transport and employment at your doorstep.
CONTACT Monument, 0434 070 654, www.landbymonument.com.au