Hundreds of hectares of new residential land on Perth’s southern and northern urban fringe has been released as the government attempts to boost housing supply amid a chronic shortage of vacant land and homes.
The two sites in Eglinton and Karnup were expected to generate more than 6000 new residential lots to home 16,000 people, including up to 900 new social homes.
Vacant land for sale along Perth’s northern coastal communities.Credit: Ross Swanborough
As part of the land release, the government will invite developers to put forward proposals to support new housing on the land, under two development models: a partnered approach or direct purchase of the land.
Under the partnered model, successful proponents will collaborate with DevelopmentWA to plan, design, and develop the sites.
Premier Roger Cook said the government was driving major reforms and initiatives to unlock more land to boost housing supply across the Perth metropolitan area.
“WA’s growing economy and enviable lifestyle are attracting people to our state, which is why we are calling on industry to partner with government to continue to address future demand for housing,” he said.
Deputy Premier Rita Saffioti said the sites would be developed into vibrant and connected communities.
“We know there is a need to boost housing supply and having development-ready land, close to key transport nodes like new Metronet train stations is absolutely critical,” she said.
“With proximity to major transport links like the Kwinana Freeway and the new Metronet Yanchep link, the 16,000 future residents in these new developments will easily be able to travel around Perth for work, study and recreation.”
Urban Development Institute of Australia WA figures showed the average price for new land in the metro area was on an upward trajectory and now stood at more than $300,000, with an average rate per square metre of more than $800.
Chief executive Tanya Steinbeck said every little bit helped when it came to battling the state’s housing supply crisis, particularly given WA had the fastest growing population in the nation.
“Both of these areas, Eglinton and Karnup, are popular, high-growth areas where affordable housing can be delivered to people that need it,” she said.
On Wednesday, the UDIA WA released a new report that found the state government could unlock residential land and boost housing supply by around 90,000 homes in the key growth corridors of North Ellenbrook, Bullsbrook, East Wanneroo, East Wellard and Mundijong through a $420 million infrastructure program.
The infrastructure requirements identified predominantly included wastewater pump stations and trunk mains, power substations and feeder networks, and intersection and road upgrades.
On Monday Herron Todd White director Chris Hinchliffe said the high price for land had not been seen since the economic boom of 2007 and, given the struggle developers had keeping up with demand, it was unsurprising the lack of supply was driving the cost of a little slice of terra firma higher.
“The Perth real estate market is experiencing its strongest growth in 15 years, driven by a significant undersupply of properties and high demand,” he said.
“In very recent times, we have seen a notable increase in the asking prices of land in new estates - some experiencing a 20 per cent increase in land value over the past three months alone.”
Greenfield suburbs on the outskirts of Perth are absorbing tens of thousands of new residents as the state’s population booms.
Analysis by KPMG Australia revealed rapid population growth in Perth’s booming north-eastern and south-eastern growth corridors led by Alkimos-Eglinton which added 5367 new people between 2019 and 2023.
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