If you’ve been looking at land in Perth recently, you’ve probably noticed something, there’s not much of it left and what is available isn’t cheap.
This isn’t just a feeling. The data backs it up. Perth is in the middle of a genuine land supply crunch, and it’s reshaping how and where people are choosing to build. If you’re planning a new home, understanding what’s happening in the market right now will help you make smarter decisions about your next move.
What’s Actually Happening with Land in Perth?
The numbers tell a pretty clear story.
According to UDIA WA’s Urban Development Index, the average price of a new residential lot in Greater Perth reached $404,150 in the December 2025 quarter. Up 16% over the year. That’s a massive shift from just two years earlier, when the average sat around $250,000.
UDIA WA / API Magazine – Perth land prices top $400,000 as supply crunch deepens (February 2026)
But it’s not just about price. It’s about availability. As of 31 December 2025, there were just 250 lots on the market across Greater Perth. That’s down 33% from the previous quarter and well below the five-year average of 1,180 lots.
To put that in perspective, the September 2025 quarter recorded the highest number of new lot sales ever in a single quarter (3,683 lots), while at the same time, available supply dropped to a record low. Demand is surging. Supply can’t keep up.
UDIA WA / API Magazine – Perth’s new land market hits record sales levels (November 2025)
Why Is This Happening?
- Population growth — WA is experiencing the highest population growth in the country, fuelled by interstate and overseas migration. More people means more demand for housing.
- Infrastructure bottlenecks — even where land is zoned for development, getting it to market takes time. Environmental approvals, service infrastructure, and planning delays are all slowing the pipeline.
- Estates closing out — many established land estates across the metro area are reaching their final stages. UDIA WA has noted that dozens of estates have completed or will close out in the coming years, reducing the “low-hanging fruit” of affordable greenfield land.
- Construction capacity — even when land is available, the building industry is stretched. Labour shortages and rising construction costs mean fewer homes are being completed relative to demand.
The result? Perth has lost its position as Australia’s most affordable capital city for new land. According to UDIA’s 2024 State of the Land Report, Adelaide has now taken over, with a median lot price of $307,000 compared to Perth’s $329,000 at the time of reporting, a gap that has only widened since.
The Urban Developer – Adelaide Overtakes Perth as Most Affordable Capital (March 2025)
What Does This Mean If You Want to Build?
If you’re set on building a new home in Perth, the land shortage doesn’t mean you’re out of options, but it does mean you need to think more broadly about how to approach it. Here are the main pathways people are taking right now.
Growth Corridor Land
There is still land available in Perth’s outer growth corridors. Suburbs like Alkimos, Yanchep, Eglinton, Byford, Baldivis, and Wellard, but competition is strong and lots are selling faster than they’re being released.
If you’re looking in these areas:
- Move quickly — lots in popular estates can sell within days of release
- Get your finance sorted first — pre-approval means you can act when land becomes available
- Watch for new stage releases — developers release land in stages, so staying on mailing lists and working with someone who tracks releases can give you an edge
Knockdown Rebuild
This is one of the fastest-growing options in Perth and the land shortage is a big reason why.
If you already own a home in an established suburb (or can buy one), a knockdown rebuild lets you demolish the existing house and build a brand-new home on the same block. No need to compete for vacant land. No stamp duty on a new purchase. And you get to stay in a suburb that already has schools, shops, parks, and transport.
KDR is especially popular in middle-ring suburbs like Bayswater, Maylands, Canning Vale, Morley, and Dianella. Areas where vacant blocks are essentially non-existent but the location is hard to beat.
Rural and Lifestyle Builds
For buyers who want more space and are willing to go further out, rural and semi-rural builds are becoming an increasingly attractive option. Areas like Mundijong, Serpentine, Chittering, Gingin, and Bullsbrook offer larger lots at lower prices with the trade-off being a longer commute and fewer nearby amenities (though that’s changing as these areas grow).
If you work from home or have flexible arrangements, a rural build can offer lifestyle value that’s hard to match closer to the city.
Granny Flats
If you already own a property with enough land, adding a granny flat is another way to create new housing without needing to buy a separate block. It’s a practical option for multi-generational families, or as a rental income source in a market where vacancy rates sit below 1%.
Smaller Lot and Infill Builds
Perth is seeing more development on smaller lots. Think cottage lots, duplex sites, and subdivided blocks in established suburbs. These require a builder and design approach suited to narrow or compact sites, but they’re opening up options in suburbs that would otherwise be out of reach for a new build.
The Bottom Line
Perth’s land shortage isn’t a short-term blip. The structural pressures, population growth, infrastructure lag, estate closures, and construction capacity limits are expected to persist well into 2026 and beyond. UDIA WA has flagged a cumulative shortfall of around 117,000 homes against National Housing Accord targets for Greater Perth over the next five years.
The Urban Developer – Adelaide Overtakes Perth as Most Affordable Capital (March 2025)
That doesn’t mean building is off the table. It means the people who plan ahead, understand their options, and get the right advice early are the ones who’ll make it work.
How Emily Rose Homes Can Help
This is exactly the kind of market where independent guidance matters most. At Emily Rose Homes, we help buyers across Perth navigate the current landscape whether that’s securing land in a competitive market, exploring a knockdown rebuild, planning a rural build, or figuring out what’s realistic within your budget.
your comfortable budget might look slightly different.
