Lot supply in Perth has hit a record low, with just 617 available as of March 31, the lowest since 2006. The ongoing housing supply crisis in Western Australia has left developers struggling to keep up with the increasing demand. The number of lots on the market has dropped by 34% compared to the last quarter and by 70% compared to the same time last year. Despite an increase in construction activity, the supply shortfall is expected to continue well into 2025.
The Urban Development Institute of Australia’s latest data shows a 30% increase in the number of lots sold during the March 2024 quarter, with a staggering 135% increase over the year. Chief executive Tanya Steinbeck attributes this dramatic increase in sales to the strong economic conditions, growing population, and relative affordability in Perth. The ongoing demand for housing in the city has led to an acute housing supply shortage, with systemic failures in strategic planning being blamed for the lack of a sustainable forward pipeline of housing supply.
The housing crisis in Western Australia is expected to be deep and long-lasting, with no medium-term remedy in sight. Despite the increase in construction activity, the supply shortfall is forecasted to continue with a 30,000 shortfall in housing supply over the next five years. Perth, like other cities across the country, is grappling with the challenge of providing enough housing to meet the demands of its growing population. The lack of available lots is a major concern for developers and prospective homebuyers alike.
Developers are struggling to keep up with the demand for housing in Perth, as the number of available lots continues to decline. The ongoing housing supply crisis is affecting the entire city, with a 30% increase in lot sales during the March 2024 quarter. This surge in sales reflects the strong economic conditions, growing population, and relative affordability in Perth, which continue to attract buyers to the market. However, the lack of a sustainable forward pipeline of housing supply is a major concern for the industry.
The supply shortfall in Perth is expected to continue well into 2025, with a 30,000 shortfall in housing supply forecast over the next five years. Despite an increase in construction activity, the number of available lots has plummeted, making it difficult for developers to keep up with the demand. The lack of medium-term remedies for the housing crisis is a major challenge for the industry, as Perth grapples with an acute housing supply shortage. It is clear that systemic failures in strategic planning have contributed to the current situation, and a sustainable solution is needed to address the ongoing shortage of housing in the city.
In conclusion, Perth is facing a significant housing supply crisis, with the number of available lots at a record low and a significant shortfall in supply forecasted over the next five years. Developers are struggling to keep up with the ongoing demand for housing, as systemic failures in strategic planning have created a sustainable forward pipeline of housing supply. The strong economic conditions, growing population, and relative affordability in Perth continue to attract buyers to the market, leading to a surge in lot sales. However, the lack of available lots is a major concern for developers and prospective homebuyers alike, as the housing crisis in Western Australia is expected to be deep and long-lasting.
