A critical shortage of residential land in Perth could push the city into its second price bubble in four years, The Australian Financial Review reported.
WA has the highest rate of population increase in Australia, according to the ABS. This rate is tipped to grow further with massive oil and gas projects in the northwest coming on line, leading a roaring recovery in the state economy.
The 2010 land shortage could even be worse than Perth's last supply crisis, in 2006. Four years ago, the Urban Development Institute of Australia (UDIA) forecast there were 7,632 lots available for release by June 2006. The most recent UDIA figures showed there were just 3,065 lots available for release by June 2010.
Property Council of Australia WA executive director Joe Lenzo told AFR the onus was on the government to unclog the pipeline. "We need to reduce the red tape in getting land subdivisions to the market rather than having a situation that when demand picks up it takes two years to deliver on it," he said.
The latest issue of Your Investment Property magazine featured 19 suburbs that are expected to outperform the market, including West Perth, Maylands and Kensington. To get the full details pick up the latest issue on sale now.
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