The Urban Development Institute of Australia (UDIA) WA released its March quarter Urban Development Index (UDI) figures on May 12, providing a detailed analysis of the new land market in Greater Perth. The latest data reveals that while the average price of new land continues to climb, construction activity has begun to rise, offering a positive outlook for new homebuyers as additional supply enters the market.
Price Growth and Key Corridors
According to the UDI, the average price of new land in Greater Perth has reached $424,025, marking an approximate 78 percent increase over the past five years. The north-west corridor experienced the highest growth, primarily driven by new housing estates in the City of Wanneroo, where 1,002 lots were sold at an average price of $420,605 during the quarter. The south-east corridor, led by sales in the City of Armadale and Serpentine Jarrahdale, ranked second with 590 sales at an average price of $377,238—significantly below the Greater Perth average.
Supply Constraints and Construction Uptick
Housing affordability remains under pressure across Perth, and the UDI recorded very few lots available on the market as of March 31. The number of lots on the market at any given time serves as an indicator of overall supply levels and buyer choice. There were just 386 new lots available in Greater Perth on March 31, compared to the five-year rolling average of 1,237 lots.
In a positive sign for future supply, new lot construction levels have improved markedly over the past year, reflecting the industry's ongoing efforts to accelerate housing delivery. While construction levels decreased by 11.8 percent over the March 2026 quarter, the number of lots under construction and expected for release in the next 12 months rose by 35 percent compared to the March 2025 quarter. This increase demonstrates that the industry has ramped up in recent years to meet persistent demand and deliver more homes faster.
Government Support and Industry Outlook
Recent budget announcements from both state and federal governments have been welcomed, including a $2 billion joint funding initiative focused on enabling infrastructure such as power, water, and sewer for new developments. With housing demand remaining strong, the focus for industry and government is on continuing to build the forward supply pipeline to meet the needs of new homebuyers.
