More than $25M in Development Sites Sold in Western Australia in Recent Deals Negotiated by Knight Frank

More than $25 million in development sites has changed hands in Perth and neighbouring Mandurah across four recent deals negotiated by Knight Frank, demonstrating the huge demand for the property type.

The most recent deals included the following:

• A 7.61-hectare property at Lot 3 Mandurah Road in Karnup sold for $8.1 million
• 1.84-hectare mixed-use development site at 194-200 Wanneroo Road in Madeley was sold for $7.8 million
• A 4.87-hectare lot at 9006 Reynolds Avenue and Kirkpatrick Drive in Mandurah’s Greenfields sold for $2.7 million

The Karnup site is currently vacant, however being zoned ‘Development’ under the City of Rockingham Town Planning Scheme No. 2, it is primed for subdivision in the near term, subject to council approvals.

The property is situated between the Rockingham and Mandurah town centres and adjoins thriving estates in Perth’s outer south such as Vista Private, Golden Bay, and Secret Harbour, with its rear boundary abutting the Mandurah Train Line.

The Madeley development site, which his also vacant, neighbours the Kingsway City Shopping Centre and Highland Medical Centre in Perth’s northern growth corridor. It has huge exposure from Wanneroo Road and the nearby corner of Hepburn Avenue.

With the significant mixed-use development site offering both commercial and residential development and situated within the East Wanneroo Cell 6, it provides an opportunity for imminent residential subdivision of approximately 30 lots and commercial development.

The Greenfields site, which is also vacant, but has the potential to create around 70 residential lots, benefits from its proximity to Mandarah Town Centre and its amenity, with easy access from the train, bus and freeway network.

The suburb has had one of the biggest increases in home values across Perth, with prices rising by more than 35% over the past 12 months.

The deals, which saw all the properties sell to local developers, were negotiated by Knight Frank agents Tony Delich and Cory Dell’Olio.

Mr Delich said there had been a strong buyer response to the sale campaigns for the recently-sold development sites, resulting in more than $25 million changing hands across four deals over the past few months.

“There is huge demand for residential property in Perth with a shortage of supply relative to demand,” he said.

“Perth’s vacancy rate is very low, which is being exacerbated by migration into Western Australia driven by the state’s strong economy, which was recently named as Australia’s best-performing in the latest CommSec State of the States report.

“The strong demand for residential housing, particularly affordable product suitable for first homebuyers, means development sites are keenly sought after by developers.

“Each of the development sites we recently sold – except for Greenfields, which was sold off market – received more than 60 enquiries, with multiple offers received above the expected price, and ultimately all were sold in cash deals.”

Mr Dell’Olio added: “In this market, with huge demand from developers, buyer offers are clean, with no due diligence clause, otherwise they are generally not accepted.

“For the smaller sites up to 20 hectares we generally find local buyers who understand the market are more successful than developers from eastern states, who tend to make offers with conditions.

“With Western Australia’s economic conditions strong, which is driven off the back of the massive resources sector, we expect demand for residential property – and hence well-located residential development sites – to continue to be hotly contested.”