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Over $25 million in development sites were sold in Western Australia, demonstrating strong market demand.
In a series of recent transactions, more than $25 million in development sites have been sold in the Perth and Mandurah regions, indicating a robust demand for property, according to negotiations handled by Knight Frank.
Among the notable sales are:
- A 7.61-hectare property at Lot 3 Mandurah Road in Karnup, which sold for $8.1 million.
- A 1.84-hectare mixed-use development site at 194-200 Wanneroo Road in Madeley, fetching $7.8 million.
- A 4.87-hectare lot located at 9006 Reynolds Avenue and Kirkpatrick Drive in Mandurah’s Greenfields, sold for $2.7 million.
The Karnup site, currently vacant, is zoned for development under the City of Rockingham Town Planning Scheme No. 2, making it a prime candidate for subdivision subject to council approvals.
It has a strategic location between the Rockingham and Mandurah town centres and proximity to thriving estates in Perth’s outer south, such as Vista Private, Golden Bay and Secret Harbour, with its back bounding adjacent to the Mandurah Train Line.
Meanwhile, the Madeley development site, also vacant, is positioned near the Kingsway City Shopping Centre and Highland Medical Centre in Perth’s northern growth corridor.
This site offers significant exposure to Wanneroo Road and the intersection in Hepburn Avenue, and it holds potential for approximately 30 residential lots alongside commercial development.
The Greenfields site, likewise vacant, has the capacity to create around 70 residential lots, and benefits from the closeness to the Mandurah Town Centre and accessible transport links.
Recent data indicates that the suburb has experienced substantial growth, with home values in Perth rising more than 35 per cent over the past year.
Knight Frank agents Tony Delich and Cory Dell’Olio facilitated the transactions, which saw all properties sold to local developers.
Delich noted the strong buyer interest in the sale campaigns for the recently sold development sites and emphasised the critical shortage of residential property in Perth, which is estimated to be lower than the demand.
“There is huge demand for residential property in Perth with a shortage of supply relative to demand,” he said.
He highlighted the low vacancy rates in Perth were exacerbated by an influx of migration into Western Australia.
This trend is largely due to the state’s robust economy, which was recently recognised as Australia’s top performer in the latest Commsec State of the States report.
“The strong demand for residential housing, particularly affordable products suitable for first home buyers, means development sites are keenly sought after by developers,” Delich commented.
Each of the development sites that Knight Frank recently sold – apart from Greenfields, which was sold off-market – received more than 60 enquiries, with multiple offers received above the expected price, and ultimately all were sold in cash deals.
Dell’Olio added that in the current market, offers from developers typically come without due diligence clauses due to the high demand.
He noted that local buyers are often more successful in securing smaller sites as they better understand the market dynamics compared to developers from eastern states who may include conditions in their offers.
Dell’Olio emphasised that with Western Australia’s economy buoyed by its significant resources sector, it is anticipated that demand for residential properties and prime development sites will remain fiercely competitive.
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