Mid West unit sales explode 55 per cent in one year while vacant land stagnates according to new REIWA data

Land values in the Mid West have stagnated in the past year as buyers are put off building while unit prices have boomed, according to new data from the Real Estate Institute of WA. The data compares activity in the property market across the Mid West, taken from January to June 2021 and the same timeframe in 2022. The median price of vacant land in the region rose slightly from $95,000 to $100,000, an increase of just 5 per cent. There were 152 vacant blocks sold in the first six months of this year, compared with 141 in the preceding period in 2021. While land remains unattractive for buyers because of the delays involved in trades and construction, units skyrocketed with the volume of sales increasing by a massive 55 per cent, from 42 in 2021 to 65 this year. This increase in popularity also had an impact on price, with unit values rising 26 per cent in the past year, from $178,250 to $225,000. Ray White Geraldton’s Henry Vantiel said growth in unit sales can vary greatly. “It takes into account everything from a $100,000 unit in central areas to those over a million in the Marina area,” he said. “The demand for quality central units to move into is high though and if we had the stock, sales numbers would likely increase again.” Mr Vantiel said it was no surprise land has only experienced a mild increase as there is still a long wait for a home to be built. “Many who may have looked at land in recent years have purchased established homes instead so there hasn’t been a great deal of pressure on land prices or stock,” he said. Houses in the Mid West remained steady with a median price increase of 12 per cent, from $325,000 to $363,000, whiles sales experienced similar growth going from 541 to 598. While issues continue to affect the building industry, Mr Vantiel said he expected land sales to pick up in the future. “As the time frames for building start to come in, land should find favour again and we can’t see the low prices for land remaining at what they have been,” he said. “The cost to produce a block of land with roads, deep sewer, power, roads etc quite often is more than what the selling price is.”