Professionals Real Estate The greater focus on value for money amongst property buyers will help underpin demand for residential building land in the Mandurah area over the coming year according to David Hobbs, CEO of Professionals Real Estate Group.
Mr Hobbs said that greater competition amongst land developers in the area has meant that Mandurah was now one of the most inexpensive areas in the greater Perth area to buy a block of land.
“The median price of a block of land in the Mandurah-Murray area is around $170,000 or $100,000 lower than the median price for a block of land in the greater Perth area. In addition to very competitive land prices, land developers are also offering major financial incentives which can cut thousands of dollars further off the real cost of a block of land in the area. Land developers are now offering these attractive financial incentives in the Mandurah area due to an overall slowdown in new building activity. The latest ABS figures on new building activity for the Mandurah area show a nearly 10% fall in new home approvals during the first seven months of this financial year,” he said.
“For anyone wanting to get onto the property ladder or upgrade their home, now is the perfect time to consider building a new home in the Mandurah area while land prices are very competitive. In the near future, the property market in Mandurah will rebound due to its major lifestyle attractions and high level of infrastructure including the rail link to Perth,” he said.
Mr Hobbs offered the following tips to anyone considering buying a block of land in the Mandurah area while land prices are very competitive.
- Mandurah is a lifestyle driven real estate market so there is always strong demand for building blocks located near the ocean, estuary or in areas which have lifestyle facilities such as golf courses.
- Register your name with as many local real estate agents as possible who specialise in selling lots of land in the area you want to buy. A good real estate agent will immediately notify you of a suitable lot once it becomes available.
- Target estates which have improving social infrastructure such as new shopping centres, medical facilities or schools.
- Land releases in more inland areas of Mandurah such as South Yunderup and Ravenswood are relatively more affordable and should benefit over the long term from the construction of the Mandurah bypass.
- It is important to be patient and not buy the cheapest lot you can find. Buying a cheap block of land can prove a financial headache if it requires substantial site works. If the block is sloping or has limestone under the surface then site works can add more than $20,000 to the overall cost of the home. Get advice from a reputable homebuilder before deciding to buy a block.
- If you plan to rent a home in Mandurah while your home is being built, make sure that you can secure a suitable rental property as soon as possible because the rental vacancy rate in the area is now very low.
- Many people building a new home in Mandurah underestimate the overall cost of building their new home and as a result do not have enough money to finish the home such as installing carpets, tiling and window fittings. Ask your new homebuilder to detail all of the costs of building a new home before deciding on a final budget.
- Ask yourself how long do you propose to live in your new home in Mandurah? Many people building a first new home, in particular, decide to build expensive additions to their home because they do not have enough family space after children are born. It is much more cost effective to build a larger home initially rather than building home extensions. Deciding your future needs can save you money in the long term.
If you are looking to sell or purchase land in the Mandurah area or elsewhere, be sure to seek professional advice. Contact your local Professionals office.
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