Perth’s new land market hits record sales levels
Greater Perth has logged its strongest quarter of new land sales on record while available lots have plunged to an all-time low, underscoring a housing crunch that shows no sign of easing.
Perth’s residential property market remains in unprecedented territory as housing prices continue to rise, and supply remains extremely tight.
According to the latest UDIA WA Urban Development Index (UDI) for the September 2025 quarter, Greater Perth recorded the highest number of new lot sales ever in a single quarter, while at the same time the number of lots available on the market dropped to a record low.
These dual records capture the intensity of the housing pressures facing Western Australia, similarly to many capital cities across Australia, and highlight a challenge that needs to remain front and centre of government policy at all levels.
The UDI shows 3,683 lot sales were recorded in the September quarter, which is up a remarkable 51.5 per cent on the previous quarter and 58 per cent higher than the same period last year.
Yet, as sales surge, supply remains constrained. As of 30 September, just 393 new lots were available for sale across Greater Perth, representing a 55 per cent decline on the previous quarter.
Amid ongoing housing supply shortages, these figures are a stark reminder of just how strong demand for housing in Perth remains, and how strong it is likely to remain for the foreseeable future.
Demand is likely to continue given strong economic conditions, continued population growth, and demand side drivers including the Federal Government’s expanded Home Guarantee Scheme, which commenced on 1 October.
While sales volumes grow, the average price of new land in Perth has remained relatively steady for this quarter, sitting at $377,535.
Quarter-on-quarter, this represents only a 0.7 per cent increase in the average price of a new block of land, but steadiness in the short term should not distract from the longer term trajectory, with average prices up 8.8 per cent compared with the same quarter last year, and up a substantial 50 per cent from the September 2023 average of $250,965.
That is exceptional growth in just two years.
It is somewhat surprising that prices in the new land market have managed to hold steady this quarter, particularly when compared with the established housing market, where prices continue to escalate rapidly.
Yet the reality is that prices are at their highest level ever in Perth’s new land market, and they are not likely to come down any time soon.
Land is not just sitting idle
The focus from industry and government to get more housing delivered to the market right across the continuum from affordable rentals through to standard home ownership has been razor sharp over the last couple of years, however, greenfield development in Perth has done much of the heavy lifting when it comes to bringing on new supply to market.
This has been due to a relatively easier pathway to develop new land for housing compared with in the infill and medium and high density sectors.
That is not to say there are not a range of complexities to delivering new land for housing, and those complexities continue to slow the flow of new housing.
The forward supply pipeline remains constrained by a range of well recognised barriers, including enabling infrastructure shortfalls, environmental considerations, and planning delays, which all continue to limit the speed at which zoned land can become “housing ready”.
There is a misconception that Perth has ample developable land just sitting in reserve, ready to be activated at a moment’s notice.
Yes, there is land zoned and earmarked for future urban development across Greater Perth, however, much of it is constrained, whether by infrastructure capacity, environmental approvals, or the need for coordinated structure planning.
Zoning land is only the first step; turning that land into serviced, titled, build-ready lots requires investment, coordination and time.
Perth’s growth corridors
In the infill space, despite several policy initiatives to support growth in these areas, market fundamentals continue to push the bulk of housing delivery to the fringe, where land can still be brought to market at scale.
In terms of where most of the growth has occurred in the last quarter, the North West Corridor remains the engine room for greenfield development in Greater Perth. The region, particularly the City of Wanneroo, is home to some of the few remaining large-scale masterplanned estates capable of bringing significant volumes of new lots to market.
The North West Corridor accounted for 36 per cent of new land sales in the September quarter, followed by the South West Corridor with a 21 per cent share.
The scale of Perth’s housing challenge is not lost on the State Government, and we have seen several positive steps aimed at getting more homes on the ground faster. UDIA WA appreciates the range of initiatives implemented to date, including many that have been strongly advocated for by UDIA WA.
The Housing Enabling Infrastructure Fund (HEIF), for example, is already supporting the delivery of critical infrastructure that unlocks land for development. Likewise, the transition of Keystart to a Government Trading Enterprise has the potential to provide greater flexibility to support industry in increased housing delivery.
These, among other planning reform measures, are positive reforms, however, more is required and we cannot afford to take our foot off the accelerator.
The latest UDI figures clearly show that demand is not tapering off and without a significant and sustained boost to supply across both greenfield and infill areas the pressures we are seeing today will only intensify.
What is needed now is a coordinated, whole-of-system approach to accelerate land supply, streamline planning processes, and ensure that infrastructure delivery keeps pace with population growth. Developers are ready and willing to deliver, but they cannot do it alone.
Government, industry and the community must work collaboratively to keep supply flowing and ensure that West Australians can access the housing needed now, and for the state’s future.
The numbers tell the story, and the story is clear; demand is high, supply is tight and the stakes could not be higher.
