Developer Aigle Royal Group’s $18.5 million purchase of a landholding in Piara Waters has set a new per-hectare benchmark for residential development sites in the Perth metropolitan area.

Located at 713 Warton Road, the 10.2ha plot was the last landholding of scale available in the rapidly growing south-eastern Perth suburb.

The sales campaign was coordinated by LJ Hooker Commercial Perth and Effective Property Solutions.

LJ Hooker Commercial Perth Founding Principal Vincent Siciliano said the campaign was extremely competitive, with high levels of enquiry from large-scale national developers as well as local groups.

“We received 89 enquiries, which resulted in 12 firm offers,” Mr Siciliano said.

“There was a lot of interest from developers that are currently working in and around the Piara Waters-Harrisdale market and would have liked to have added this site to their portfolios.”

Effective Property Solutions Managing Director Erwin Edlinger said the price achieved was a reflection that the land was one of the most unique opportunities in the Perth metropolitan area.

“Most of the developers active around Piara Waters are now sold out of lots, or they have extremely limited stock available,” Mr Edlinger said.

“The interest we received for this landholding reflects the quality of Piara Waters as a residential enclave, as well as the scarcity of nearby offerings.

“The high school that is under construction was also a big attraction.

“Often you see on marketing documents statements like ‘proposed school’ or ‘future shopping centre’, but with the school opening next year, that removed the guesswork.”

Mr Siciliano said Aigle Royal would “hit the ground running” at Piara Waters, with early works expected to kick off in the first quarter of next year.

“What came through for many of the prospective buyers was it was less about maximising the number of lots sold, but more about maximising the size of the lots,” Mr Siciliano said.

“There’s been a lot of research done and there is a lot of information available, and homebuyers in the market at Piara Waters are clearly interested in larger lots.

“There was the potential to create up to 200 lots, but Aigle Royal is likely to meet the market and develop only around 160 to 170.”

Mr Siciliano said the sale was also clear illustration that strong growth areas were helping developers see past the uncertainty and volatility surrounding new housing construction and pursue opportunities to bolster their pipelines.

“Some east coast groups have seen a slowdown in activity in their home states, so they’re turning their eye to WA to seek out new opportunities,” Mr Siciliano said.

“At the same time, local developers are keenly aware of the strength of not only the state’s economy, but also the growth potential of the Piara Waters corridor.”

LJ Hooker Commercial and Effective Property Solutions marketed the land on behalf of its owner, GM Property Group.

The transaction settled on Tuesday, September 27.

To request a sales analysis please contact the selling agent LJ Hooker Commercial Perth Founding Principal Vincent Siciliano and Effective Property Solutions Managing Director Erwin Edlinger via the below contact details.