Construction activity in Perth's primary growth corridors is showing promising signs of increase, providing a glimmer of relief amidst the ongoing housing supply crisis and sustained high demand. The latest data from the UDIA WA Urban Development Index for the December 2025 quarter paints a detailed picture of market dynamics at a localised level across four key areas.
Market Overview: High Demand Meets Supply Constraints
The Perth metropolitan area continues to grapple with record-high lot prices due to a severe undersupply of housing. However, the recent quarter indicates a meaningful uplift in new land development, particularly in greenfield markets. This trend suggests that while challenges persist, there is a positive shift in construction pipelines that could ease pressure over the coming year.
City of Wanneroo: Leading in Sales and Construction
In the City of Wanneroo, sales activity reached the highest level among all local government areas in Perth, with 1,127 lots sold during the quarter. The average price climbed to $401,628, reflecting a 20 per cent increase over the past year. Despite this rise, land values in Wanneroo remain slightly below the Greater Perth average of $410,784.
Encouragingly, the construction pipeline is robust, with 2,613 lots currently under construction and expected for release within the next 12 months. This figure significantly exceeds the five-year rolling average of 1,688 lots, indicating strong future supply potential.
City of Swan: Tight Stock but Improving Supply
Sales volumes in the City of Swan slowed to just 368 lot sales for the quarter, marking a noticeable decline from previous periods. Available stock is critically tight, with only 34 lots on the market as of December 31, 2025. The average price rose to $418,293, highlighting the premium in this constrained environment.
Supply conditions are showing signs of improvement, with 1,459 lots forecast for release over the next year. This represents a 35.5 per cent increase from the previous quarter and a 54.7 per cent rise year-on-year, suggesting a gradual easing of shortages.
City of Armadale: Sales Dip but Construction Strengthens
The City of Armadale experienced a 41.5 per cent decline in lot sales compared to the previous quarter, with 278 lots sold. However, this figure remains above the five-year rolling average of 242 lots. Prices continue to edge upward, with a quarterly average of $376,719, up 3.9 per cent from the prior period but still well below the wider Perth average.
The construction pipeline is strengthening materially, with 990 lots under construction—a 40.2 per cent increase for the quarter. This boost in activity points to a more balanced market ahead.
City of Rockingham: Facing a Constrained Outlook
In contrast, the City of Rockingham is dealing with a more constrained outlook, with sales dropping to just 198 lots for the quarter, a decline of 46.9 per cent. The average price saw a modest lift to $347,255, up 1.7 per cent for the quarter.
However, only 265 lots are currently under construction, which is 65 per cent lower than a year ago and well below the five-year average. This limited pipeline suggests ongoing supply challenges in this area.
Conclusion: A Market in Transition
Overall, the December 2025 quarter highlights a Perth housing market still driven by undersupply but with a meaningful uplift in new land development across key growth corridors. While areas like Wanneroo and Armadale show strong construction pipelines, others like Rockingham face more significant constraints. As these trends evolve, they will play a crucial role in shaping the future affordability and availability of housing in the region.
