Stockland has paid $91 million for more than 4,600 residential lots over three sites, strategically located in the fast growing north-west, north-east and south-west metropolitan corridors of Perth.
The acquisition includes a 40-hectare parcel of land in Sinagra for $53 million, 334 hectares of land in Baldivis for $27 million and 11 hectares of land in Brabham for $11 million which will be consolidated into the company’s existing Whiteman Edge residential project.
Brabham is located 20 kilometres from Perth's CBD, Baldavis is 37 kilometres south of Perth and Sinagra is located 23 kilometres north on an elevated site across Lake Joondalup.
The ASX-listed developer takes the view that an improving WA economy will bolster Perth's market in the second half of 2018.
“We’ve seen early signs of improved economic conditions in WA, particularly in Perth, and this additional land will enable us to plan for three new liveable, affordable residential communities over the long term," Stockland chief executive of residential Andrew Whitson said.
"There have been consistent sales of about 500 land lots a quarter in the three quarters to September, a volume that had traditionally been the lower end of the market," Whitson said.
“These acquisitions set us up well to take advantage of future demand in the coming years.”
[Related reading: Stockland's Annual Profit Increases 34% to $1.2 billion]“We are committed to helping more Western Australians move into their own homes by creating a diverse range of liveable and affordable housing options at our connected masterplanned communities," Stockland general manager for Western Australia Col Dutton said.
“In Brabham, the additional 200 lots adjoin our existing Whiteman Edge project, which enables us to leverage planned infrastructure including a retail town centre, future primary school and the planned Ellenbrook rail line, part of the MetroNet project.
“The Sinagra site has capacity for nearly 700 home sites, with a large proportion offering views across Lake Joondalup and the surrounding natural landscape, and includes plans for a new primary school.
“At Baldivis, our plans for a new residential community will include around 3,700 homes conveniently located just off the Kwinana Freeway within 3 kilometres of Wellard Rail Station. The site is a 30-minute drive to more than 100,000 jobs, including major employment areas in Rockingham, Kwinana, Henderson and Bibra Lake.”
Stockland has a current portfolio of assets in Western Australia of $1 billion, which includes four shopping centres, six residential communities, one retirement village with another under construction and two office/logistic park assets.
[Related reading: Stockland Commences Construction on $222 Million Business Park]Stockland, Australia’s largest residential developer, in its first quarter update to September 30, reported moving annual turnover growth of 0.3 per cent and specialty growth of 0.2 per cent. The Group’s retail business saw flat sales growth amid challenging conditions with its residential and retirement businesses performing better.