Shifts in the land development sector will always be market-led, and if our experience with COVID-19 means improving the amenity in our suburban areas due to buyer demand, it will represent a very rare and positive outcome for the pandemic experience in WA.
Monument land estates have had a massive 5-fold increase in sales as a result of the Government’s response to COVID-19. We are seeing many in the industry fast-track the creation of new lots to keep up with demand – sometimes to an enormous capacity.
An important message for buyers is to make sure that these new lots carry the same integrity as those previously on offer, and that the release of new land will not negatively impact the purchase.
There are a range of long-term benefits to buying land in boutique developments, and the influx of new land due to COVID-19 may highlight the importance of this much sooner than expected.
Obviously COVID-19 has affected practically every aspect of life, how do you think this impact will be reflected in new land developments over the next few years? Do you see more emphasis being placed on open spaces and connection to nature?
As a boutique land developer, location, an abundance of open space and integrating the land’s natural features and typography into the estate design has always been an integral part of our development program. However, COVID-19 has most certainly shone a spotlight on just how incredibly important this is.
The impact of what has occurred around the world as a result of COVID-19 has made people reassess their lifestyle choices. They are looking at their own community and its access to nature, exercise options and reflective spaces through a different lens.
As a result, I believe land developers will lean even more towards providing improved facilities and outlooks, and buyers will always consider what the estate might look like should we go back into lockdown.
Are there any ways COVID-19 has already affected land developments?
It is too early to see any impact that COVID-19 might have on the design aspect of a land development, although the heightened sales activity off the back of generous Government stimulus grants and incentives has offered some insights into what buyers will be looking for into the future.
The most successful land estates during this period have been those with larger family sized lots and direct access to nature.
The heightened importance of our Hamelin Park beachside location at Secret Harbour, the proximity to the nature reserve at The Wedge in Wellard North, and the stunning hill-top coastal outlook whilst surrounded by majestic Tuart trees at Atop in Beeliar have been extraordinarily evident.
Do you feel buyers will be looking for certain boxes to tick in light of COVID?
The onset of lockdown effectively stress-tested our homelives and communities. It would be impossible, if not improbable, for buyers to avoid carrying these experiences into a new house and land purchase.
New home design is likely to be most impacted, with more space and breakout rooms, such as a study or second living area, on the ‘must have’ tick list. In turn, this will influence lot sizes as homesites will need to increase to accommodate the new requirements.
Other factors that I believe will now weigh heavily on a buying decision include easy access to public open space and amenities, a friendly, supportive and established community, and the ability to access the natural environment for some reflective and recreational time.
Where do you see the future of land development and are there any certain ‘trends’ that might appear?
Prior to COVID-19, there was definitely a trend that saw people move closer to the city and established areas. I believe this will continue as a result of lockdown, as people realised the issues relating to isolation and the importance of being near infrastructure and family.
The demand to be part of an infill land estate will continue to increase and land developers will take larger leaps towards providing an entire lifestyle package. Homesites will no longer be about the sheer size of the lot, there will now be much broader considerations at hand.
However, on the other end of the spectrum larger more rural lifestyle options will also become sought-after by some.
Comments by John Wroth, Director of Monument parent company M/Group.
The Wedge Creates a Children’s Wonderland
24 October 2020
Surrounded by natural wilderness, The Wedge by Monument in Wellard North is shaping up as a …
Surrounded by natural wilderness, The Wedge by Monument in Wellard North is shaping up as a children’s wonderland, with a modern playground and discovery walking trails scheduled for completion by Christmas, plus a childcare centre in the pipelines.
Arguably the most stunning residential environment located in Perth’s southern corridor, families have eagerly snapped up homesites in the estate’s Stage 1 and Stage 2 releases, leading developers to fast-track release plans for Stage 3 with lots to be available by the end of the year.
“Creating a boutique environment gives us license to add signature features throughout the landscape and dramatically enrich the estate’s lifestyle and culture offer. It also creates a point of difference in a market that is so commonly unvaried and lackluster,” he said.
“When families visit The Wedge, they immediately see why it will soon be the ‘talk of the town’. This is not only great for residents who enjoy the facilities, it means the value of the property will invariably sit above other locations.”
“With a primary and high school next door and the stunning and protected Bulrush Nature Reserve wrapping around the estate, it would be difficult to find a better place to raise children.”
The Wedge is located between the freeway and the ocean, and is close to public transport, medical facilities and shopping.
Stage 1 quickly sold out and families are already settling into their new homes. Stage 2 is 50% sold with titles due this month. The increased demand and continuation of Government grant incentives has resulted in the acceleration of the estate’s development program to allow more people to get a foothold on land in the estate sooner.
“The Government grants have had an enormous impact on land sales throughout Perth, although land estates that are perceived by buyers as more desirable have experienced greater demand. This is why we made the decision to fast-track our development schedule and bring forward Stage 3,” Mr Wroth continued.
“Unlike many developers, we have made a commitment not to alter our prices. This means homesites at The Wedge represent excellent value to everyone from first homebuyers to growing families looking to make the most of these great buying conditions.
“The Wedge is emerging as an incredibly special place, and why wouldn’t you want to live in a location with so many great natural and integrated children facilities.”
The Wedge, located on Bertram Road, Wellard North, comprises homesites sized between 344sq.m and 537sq.m with prices starting from $174,000.
For more information visit www.thewedgewellard.com.au or contact Damyn Strang 0434 070 654.
Is it time for a sustainable stimulus solution
30 July 2020
The Governments’ incentives to drive activity and growth in the property sector have been …
The Governments’ incentives to drive activity and growth in the property sector have been highly effective in achieving the desired outcomes. As a result, developers are calving through land stock to keep up with demand and builders are facing the pressure of delivering across the entire supply chain. So, is it time to look for a more sustainable and enduring model?
Boutique land developer, Monument, is facing the challenge of keeping up with demand more than most. The company specialises in high demand and limited supply land-sites located close to city in established areas– the likes of which will generally attract more attention to the buyer market.
Following consecutive government announcements to introduce a series of home building grants, the company was quick to experience a huge spike in interest and sales.
However, while the stimulus packages have been warmly welcomed by the sector, Mr John Wroth, Director of Monument parent company, M/Group, says it is time for the Government and industry to take stock and focus on a plan that supports the sustainable growth of the property sector.
“There has been an enormous response to the grants and incentives, and many land developers are running low of stock to meet the new demand. On the face of it, this is not a bad problem to have, although the pressure is now on to increase land production and deliver on home builds without impacting the cost to the buyer,“ he said.
“As developers fast-track new land stages, the question needs to be asked, what happens when the incentives slow down.”
Monument has recorded over 40 sales across its three boutique estates in the last month and has seen an increasing reliance on banks to speed up processing timeframes to meet the deadline driven requirements of grants. There are also fears that a pending lack of supply will create an imbalance in the market as the industry aggressively works to keep up with demand.
Mr Wroth believes the company’s predicament in achieving high sales volumes is not isolated and there could be risks associated with incentives being removed swiftly and without consideration of the impacts.
“The State and Federal Governments should be commended for acting quickly and decisively to stimulate the property sector. It is now critical for government and industry alike to consider the consequences of what happens next and what the impact will be on a sector that is so important to maintaining a buoyant economy,” he continued.
“There is an abundance of opportunities that could help to maintain the steady growth of the sector, including the slow pulling back of incentives, or even a capped program that is reoffered annually. The idea would be to continue the great work of government and maintain the growth of the sector in a measured and continuing way.
“This issue sits way beyond achieving good sales targets. It is something that will impact everybody.”
For more information visit www.landbymonument.com.au.
It’s a Race to Get the Best Sites at the Right Price
4 July 2020
The Governments’ incentives have created a flurry of buyer interest with Perth’s best homesites …
The Governments’ incentives have created a flurry of buyer interest with Perth’s best homesites being snapped up at pre-Covid-19 prices. However, as demand increases and stock dries up, buyers need to be aware of inevitable price increases that are likely to create an impact across the entire home building supply chain.
Since a consecutive string of government announcements introduced home building incentives to stimulate the economy, Perth developers have been working tirelessly to meet new demand from people wanting to take advantage of the incredible savings.
Of course, the best and most well-located homesites are attracting most of the attention.
Boutique land developer, Monument, is experiencing this more than most. The company specialises in boutique, high demand and limited supply land-sites located close to city in established areas.
In the past month, Monument has sold over 40 homesites across its three estates, and its sales consultants are taking new enquiries on a daily basis.
Mr John Wroth, Director of Monument parent company, M/Group, says while this seems like a good problem to have, buyers need to act fast in order to secure their home and land package before the industry responds to the increased demand.
“The response to the government incentives has been enormous, but the reality is that many developers had been running according to a measured release plan of land stock prior to the announcements, so the best available lots are now simply walking out the door,” he said.
“The process of new approvals is arduous and timely and in the case of boutique developments such as ours, there is only a limited amount of land we have available. While we have no intention of increasing our land prices, other companies will find it hard to avoid the pressure for builders to meet demand through their supply chain is likely to impact building costs.”
“It is imperative that buyers recognise the extraordinary buying conditions and ensure they are finance-ready to act fast in securing the best possible land package for their new home.”
Here are some tips to help you secure the best lots on the market.
- Bigger is often seen as better!
Larger lots continue to prove the most sought after and, as such, are often in short supply. While it may be easier to secure larger lots in the outer suburbs, value is always going to be on location so do your homework and buy wisely.
- Be on the front foot with frontages
Home frontages of 15m or more are rare and popular. They often have a wait list of multiple offers in place, so it is prudent to get in fast and secure one as early as possible.
- Be finance ready
Make sure you have your finance pre-approved and speak to your mortgage broker or bank before making the commitment to buy a lot. Being prepare not only gives you the buying power to secure the lot you want quickly, it also means you won’t miss out.
- Secure your building contract now
It is unlikely that Perth will experience better building conditions any time soon, particularly with incentives that could save up to almost $70k on a house and land package. It is therefore important to recognise that the cost of building a home is currently based on pre-Covid-19 prices and builders are only able to commit to these prices if you sign quickly.
- Location is everything
Don’t be bedazzled by low prices in large outer-suburb estates. Your money will work harder and your home will be valued higher in the long-term if your land is surrounded by established infrastructure. You’ll also have the benefit of not having wait years for it to arrive.
- Don’t settle for second best
Monument offers a range of homesites across three well-located environments at various stages of development.
Atop in Beeliar is currently selling elevated, ocean view and park side lots in Stage 2 and 3 from $304,000, with Stage 4 scheduled for release and ready for titles by November. This stage will offer ocean view lots from $298,000.
The Wedge in Wellard North incorporates a community park, playground and walk trails, and is surrounded by the natural bushland of Bulrush Nature Reserve. It has sold out of Stage 1, and will have titles in place for Stage 2 in October. Lots are available from 375sq.m to 537sq.m with prices starting from $174,000.
Finally, the company’s inaugural land estate, Hamelin Park in Secret Harbour. It is just three-minutes from the beach and only has six lots left, which are priced from $194,000.
All Monument land estates are designed to impress and are located in well-established suburbs with shops, good schools, public transport and employment at your doorstep.
For more information visit www.landbymonument.com.au
Government Grants a Welcome Injection for Land Buyers
20 June 2020
Government incentives to buy land and build new homes has sent demand for land skyrocketing, …
Government incentives to buy land and build new homes has sent demand for land skyrocketing, according to Perth land developers.
“We are only weeks in from the state and federal governments’ stimulus announcement and the response has been significant,” Monument parent company M/Group Director John Wroth said. “So much so, that we expect to sell our current stock across all projects within a month.
“This is absolutely monumental. People are quickly responding to the prospect of up to almost $70,000 in incentives. Those who previously could only budget for outer-fringe areas might now be able to afford the more desirable land close to the city such as Beeliar, Piara Waters and Treeby.”
“However, this is a finite window of opportunity and I would strongly encourage anyone looking to get a foothold in the more sought-after areas to act quickly before prices adjust to demand.”
Cuttone Property Group Managing Director Phil Cuttone has also witnessed a significant growth in interest.
“We are seeing a significant spike in sales with most developers having to now consider constructing more lots to bring on new stock as quickly as possible before the December 31 grants deadline,” he said.
“The next three to four months should see titled stock being depleted across all urban areas around Perth, especially in affordable first homebuyer areas.”
“Lifestyle areas such as North Dandalup and West Pinjarra are also benefiting from land uptake where a significant increase of sales is evident.”
While this current period may be welcomed by developers, the future of the land market is dependent on a number of factors, from employment and migration growth to affordability, according to Mr Cuttone.
“Once we can look beyond the COVID-19 implications, the outlook may be positive in Western Australia compared to the eastern states, where the land prices have been at artificial highs compared to Perth which has experienced the opposite,” he said.
“I have an optimistic view of the recovery in the Perth land market for the future, anticipating that land prices will be steady for the next few years after the end of the grants, given that there is an oversupply of affordable land coming onto the market in the future.”
Mr Wroth said while land stock was being quickly bought up, buyers were spoilt for choice.
“Land buyers are certainly not starved for choice with four corridors of development and some very attractive infill land sites on the table,” he said.
“The market shake-up could have some impact on zoning, with some high-density zoned sites possibly changing to direct land subdivision.”
“However, this will all be dependent on the state and federal governments’ ability to maintain demand and stimulate the economy through the job creation, migration and improved relations with our South East Asian neighbours.”
“It is important to recognise that the property market is strong aligned to a good economy.”
The land market has been performing well recently, according to REIWA data witnessing 5049 sales for the year to March 2020, with a median price of $248,000 and 5.1 per cent change in prices for the year.
Piara Waters and Baldivis we two hotspots for land sales, witnessing 201 and 192 sales, respectively.
While the average days on the market for the land was 60, some areas like Bedford and Kinglsey witness an average of 299 and 329 days on the market, respectively.
Most areas of Perth have seen price increases, with Perth south eat witnessing a 7.1 per cent increase for the year, while the inner suburbs or Perth suffered and 10.1 per cent decrease.
Excerpt from The West Australian Property Report, 20 June 2020
Not All Land Estates Are The Same
20 June 2020
How to make your Government incentives work harder for you It’s an exciting time for land …
How to make your Government incentives work harder for you
It’s an exciting time for land buyers! Government incentives have made it the most affordable time to build your own home in over a decade, and land options are plentiful across all four corridors of Perth’s metropolitan areas.
But before you dive into making the dream of building your own home a reality, it’s important to consider the long term value prospects of this extremely rare opportunity.
“These are unprecedented times for those looking to build their own home. The Government incentives could effectively save up to $70k on a house and land package, and we are already experiencing the thrust of buyers wanting to take advantage of the opportunities,” he said.
“However, not all land estates are the same and there are clear indicators that you can look for in an estate now that will give you a higher return when you’re ready to sell in the future.”
Here’s how you can increase the value of your Government incentives.
Stay close to the action
Homes in the inner suburbs of the city will invariably attract higher values than those on the fringes.
Equally, as the population grows and subdivisions expand, the inner suburbs will become more sought-after due to the limited supply of land availability.
People will always want to live closer to the action, and the closer you are, the higher the price you will achieve.
Look for good amenity
Being close to shopping centres, schools, transport and community infrastructure, such as parks and walking trails, will always add value to a home.
Today, some developers are investing a great deal into high-quality amenity and facilities that not only attract a thriving community but also gives residents a broader lifestyle experience that extends beyond their four walls.
Find something special
If an estate stands out for you now, chances are the future buyer of your home will feel the same.
Take notice of carefully considered features within an environment that help to create an important point of difference. This could be the deciding factor between your home and another when someone is considering a purchase.
Also make sure the estate isn’t too large. An over-supply of similar stock will increase the competition when your home hits the market.
Fastrack your investment potential
It’s easy to be swept away by the potential of an estate, but how long will it take to get the promised amenity.
Most estates progress in line with the number of lots sold, which means earmarked shopping centres and schools may be pushed out longer than you anticipate depending on market factors.
Ideally, find a location with established infrastructure. This will not only give you immediate access to the benefits the amenity provides, but also the assurance that your home ‘package’ is ready for sale when you choose to hand it over.
Not all estates are the same. Monument is a boutique land developer that offers infill land sites within established areas. It prides itself on delivering a well-considered development design that introduces something unique and special into the marketplace – enhancing future resale or rental prospects.
“Monument tries to tick all the boxes in terms of maintaining and improving property values for its owners. We design our estates around the environment’s natural topography, materials, rocks, trees and other plant life and we are always looking for ways to weave creativity and interest throughout our developments,” Mr Wroth continued.
“Our estates continue to attract a great deal of attention and it’s an added bonus to us that we can future-proof our buyers’ investment.”
Monument’s current land portfolio includes The Wedge in Wellard North, Atop in Beeliar and Hamelin Park in the coastal community of Secret Harbour with other opportunities coming on board in the near future.
For more information visit www.landbymonument.com.au.
The Wedge Wellard | Land by Monument | Progress Update | April 2020
7 April 2020
Construction on Stage 2 is underway and houses in Stage 1 are already being built ready for new …
Construction on Stage 2 is underway and houses in Stage 1 are already being built ready for new residents to move in.
Find out more about The Wedge visit www.thewedgewellard.com.au/