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A 10.2-hectare lot in Piara Waters has broken the record per-hectare sales price in the West Australian capital.
The land parcel, which was purchased by developer Aigle Royal Group for $18.5 million, was desired by buyers due to the size of the lots that can be developed from it, according to LJ Hooker Commercial Perth founding partner Vincent Siciliano.
“We received 89 inquiries, which resulted in 12 firm offers,” he said. “What came through for many of the prospective buyers was less about maximising the number of lots sold, but more about maximising the size of the lots.”
Acknowledging that the Piara Waters market is interested in larger lots, Mr Siciliano said that “there was the potential to create up to 200 lots, but Aigle Royal is likely to meet the market and develop only around 160 to 170”.
Having achieved a per-hectare benchmark for residential development sites in the Perth metropolitan area, the sales campaign for the property at 713 Warton Road, Piara Waters, was conducted by Mr Siciliano’s business in conjunction with Effective Property Solutions.
Mr Siciliano outlined that “there was a lot of interest from developers that are currently working in and around the Piara Waters-Harrisdale market and would have liked to have added this site to their portfolios”, adding that there was inquiry from other large-scale national developers as well.
Effective Property Solutions managing director Erwin Edlinger said the sales price was a reflection of the land being one of the most-unique opportunities in metropolitan Perth.
“Most of the developers active around Piara Waters are now sold out of lots, or they have extremely limited stock available,” he said.
“The interest we received for this landholding reflects the quality of Piara Waters as a residential enclave, as well as the scarcity of nearby offerings.”
He said the high school under construction “removed the guesswork” for buyers when reading the market documents, which typically make statements such as “proposed school or future shopping centre”.
Mr Siciliano believes the sale clearly highlights how strong growth areas were helping developers overcome the uncertainty and volatility surrounding new housing construction and pursue options that boost their pipeline.
“Some east coast groups have seen a slowdown in activity in their home states, so they’re turning their eye to Western Australia to seek out new opportunities,” he stated.
“At the same time, local developers are keenly aware of the strength of not only the state’s economy, but also the growth potential of the Piara Waters corridor.”
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