This is the latest sign of increasing investment and development activity in Western Australia’s residential land sub-division market.
Rising Interest in Residential Land in WA
In the latest sign of increasing investment and development activity in Western Australia’s residential land sub-division market, The Reef at Two Rocks estate in Perth’s popular north-west coastal suburbs has been sold to Pindan Capital.
The Reef at Two Rocks is a 38.43ha property comprising an established residential estate, with strong further development potential, approximately 55km north of the Perth CBD. The sale included over 50 existing titled lots.
It is located close to the beach in a prime elevated position at the northern tip of Perth’s north-west coastal suburbs, with many lots overlooking the Indian Ocean.
The Reef at Two Rocks was sold by Savills, which has now concluded the sale of two of the largest residential land sub-division sites to come to the WA market in recent years and to transact in 2015.
As well as the Two Rocks site, Savills also recently completed the sale of 59ha of land at the Port Geographe residential development near Busselton in WA’s south west.
These two significant parcels of coastal land, totalling almost 100ha, were sold for a combined total of more than $50 million and together point to returning confidence in residential land sub-division development in WA.
“The recent sale of major residential sub-divisions at both Two Rocks and Port Geographe demonstrate that, in a market which could be seen as favouring buyers, land assets with significant long-term value-add potential can still attract good prices,” said Paul Craig, Savills WA Managing Director.
Mr Craig said the landmark sales point to rising developer interest in securing large WA landholdings for future residential development.
“There is particularly strong interest in providing affordable living and land sub-divisions to meet ongoing demand from the new home market,” he said.
“While these two sales were being finalised over the past six months, Savills has noted a significant increase in appetite for these types of landholdings and we are regularly being approached for further opportunities.”
Mr Craig said The Reef at Two Rocks site presented an outstanding development opportunity in Perth’s fast-growing north-west corridor and one of the strengths of the offering to the buyer market was that it comprises of an existing stock of approximately 50 titled residential lots and, subject to staged approvals, it could eventually provide up to a further 685 titled residential lots,” he said.
The 59ha site at the Port Geographe residential development in WA’s south-west has been sold for planned sub-division. The new lots will be an extension of the already established Geographe community.
“WA’s population is still growing and housing demand in the long-term represents an opportunistic undertaking for developers and other key stakeholders to fulfil this demand.”