Considerations for Buying Land in 2025

The Perth property landscape has undergone significant transformation in 2025, creating both unprecedented opportunities and new considerations for land buyers. With Perth’s median house price reaching $895,089 in October 2025 (representing 25% annual growth), strategic land selection has never been more critical for your investment success.

Metronet’s Game-Changing Infrastructure

Officially opened in June 2025, with the Thornlie-Cockburn Line and elevated Armadale Line fundamentally altering land desirability across southeastern suburbs. Properties within 800 meters of new METRONET stations are commanding 15-30% premiums, making proximity to public transport infrastructure a crucial factor in your land selection.

First Home Buyers Receive Substantial Financial Relief

Through stamp duty reforms effective March 21, 2025, you can now save up to $15,000 on stamp duty with full exemptions for vacant land purchases up to $350,000, and concessional rates applying up to $450,000 statewide. Combined with the continuing $10,000 First Home Owner Grant and falling interest rates (RBA cut to 3.60% with possible further cuts forecast), 2025 presents optimal conditions for first-time land purchasers.

New building regulations came into effect May 1, 2025

All new homes are required to achieve minimum 7-star energy efficiency ratings under the updated National Construction Code. This ensures your future home will be more comfortable, energy-efficient, and valuable in the resale market.

Nature of the land for sale

Orientation

As a rule, a northern orientation block in Perth will ensure your home receives natural light and warmth during winter, while being shielded from excessive heat in the hotter months of the year.

Harnessing natural energy to heat and cool your home means you’ll rely less on artificial heating and cooling. Not only does this save you money but it’s much better for the planet. However, while a north-facing home is the most ‘desirable’, a clever designer and builder can plan home designs that optimise any orientation.

Site Conditions

‘Site conditions’ is a term used to describe the features of the vacant land such as soil type, existing trees or rocks, water table, and soil distribution. You might want to think twice about a steep block with a lot of trees and clay soil – it could burn a hole in your pocket!

Understanding Perth’s soil classification is crucial for budgeting accurately. Perth’s soil conditions vary significantly by suburb:

• A Class (Sand/): No extra foundation costs – found in many coastal and northern suburbs, and is most common in new estates.
• S Class (Slightly Reactive Clay): Requires thicker concrete slabs – common in suburbs like Byford, Beckenham, East Cannington, and Henley Brook.
• M Class (Moderately Reactive Clay, or rock): Needs enhanced foundation work – typical in Armadale, Brookdale, Bullsbrook, and Maddington areas.

Site conditions directly affect build costs as they determine the amount of preparation (or ‘site works’) required to lay the foundations for your house. The site conditions can also impact your house design, so you really want to thoroughly investigate any limitations of the site prior to entering a sales contract. The New Gen Homes, New Homes Consultants can assist you.

Block Dimensions

Like site conditions, the dimensions of the land can affect the house design, making it simple or a little more complex to achieve your dream floorplan. Most property in Perth is rectangular which makes things easy, but you can come across odd shapes.

You’ll need to weigh up the dimensions of the land with location, too. For example, you might accept an odd-shaped block because it is in a ‘better’ suburb, particularly if it’s located within 800 meters of new METRONET stations where land values are appreciating rapidly.

Before entering a contract to purchase land, make sure the boundaries of the lot on the physical ground matches what is written in the land’s official documents. A licensed surveyor can provide you with evidence through a ‘survey report’.

Boundaries

Before entering a contract to purchase land, make sure the boundaries of the lot on the physical ground match what is written in the land’s official documents. A licensed surveyor can provide you with evidence through a ‘survey report’.

Location and Amenities

As they say in real estate: location, location, location. Consider the land’s proximity to amenities like schools, shops, public transport, parks, arterial roads, and medical facilities. If you were to rent out your home in the future, having easy access to a myriad of amenities will help you achieve a higher rental return.

Public transport proximity has become critically important in 2025 following METRONET’s major infrastructure opening. The new Thornlie-Cockburn Line provides 27-minute journeys to Perth CBD, while the elevated Armadale Line eliminates level crossings and improves connectivity. Properties near new METRONET stations are experiencing 15-30% value premiums.

High-growth opportunity zones for 2025 include:

• Southeastern suburbs along the new METRONET corridor (Cockburn Central, Thornlie, Armadale line)
• Northern corridor suburbs benefiting from Yanchep Rail Extension (Alkimos showing 21% house price growth)
• Airport economic corridor from Redcliffe to Belmont (benefiting from $5 billion Perth Airport transformation)
• Western coastal suburbs maintaining premium positioning.

Consider infrastructure developments in your location research. The $287.6 million Stephenson Avenue Extension (completing late 2025) will significantly improve northern Perth connectivity, while NBN fiber-to-the-premises upgrades in suburbs like Walliston, and Yanchep command rental premiums for remote work capability.

Legal Considerations and Zoning

What legal regulations or codes apply to the vacant land you’re looking at? Grab your fine-toothed comb because this is where you need to get down to the nitty gritty.

First and foremost, obtain a Certificate of Title from the selling agent prior to purchasing any residential property. The Certificate of Title (often simply referred to as the ‘title’) is a piece of paper that lists the present owner, any existing mortgages, and any easements on the property or restrictive covenants on the property.

Easements or restrictive covenants can greatly impact how the vacant land can be used and could affect your future enjoyment of the land.

Now to local city council requirements. Find out what city council your potential new vacant land falls within. Each city council has different requirements for properties in its jurisdiction.

R-code zoning regulations in Perth determine setback requirements and design restrictions. Understanding your property’s R-code classification affects:

• Building setbacks from boundaries
• Maximum building height allowances
• Lot coverage and open space requirements
• Potential for secondary dwellings or subdivisions.

Taking a drive around the neighbourhood will help you understand what is acceptable to that local council. Take note of carports, front fence heights, verges, pergolas, and facade aesthetics. Before committing to the land, review the local council’s policies and regulations on the following key areas. And of course, please reach out to your New Homes Consultant who is able to assist.

New in 2025: All building applications must comply with updated National Construction Code requirements including 7-star energy efficiency ratings, enhanced condensation management, and updated cyclonic wind standards between Greenhead and Kalbarri. These requirements particularly impact design approaches and material specifications. For more info or clarification, speak to one of our New Homes Consultants.

Infrastructure and Utilities

Lastly, check the availability of utility services like power, gas, internet, water, and sewage to your site. Are these connected and accessible? If not, find out the costs of having them installed and factor these into your budget and decision to purchase the land.

Financial Considerations for 2025

First home buyers benefit from unprecedented financial support:

• Stamp duty savings: Full exemptions on vacant land up to $350,000 (saving up to $11,000)
• First Home Owner Grant: $10,000 with no income testing for new homes up to $750,000
• Lower interest rates: RBA cut to 3.60% with possible further cuts forecast.
• Keystart loans: Available for eligible buyers with reduced deposit requirements from as little as 2%
• The Home Guarantee Scheme from 1 October 2025: The Home Guarantee Scheme helps first home buyers enter the property market with a deposit as low as 5%, while avoiding Lenders Mortgage Insurance.

Budget for 2025-specific costs:

• Enhanced building compliance (10-15% additional construction costs)
• Extended environmental approval timeframes (factor 6-12 months additional planning)
• Higher infrastructure connection costs due to increased demand
• Professional consultation for complex site conditions and regulatory compliance

Capital Growth Potential

Perth’s property market fundamentals remain exceptionally strong with WA’s 2.8% population growth (highest nationally), low unemployment, and mining economy resilience. REIWA forecasts 5-10% house price growth and above 10% unit growth for 2025, with consensus predictions of median house prices approaching $1 million by late 2025.

Strategic investment opportunities focus on:

• METRONET station precincts (800-meter radius for maximum benefit)
• Development WA’s new land releases in Eglinton and Karnup (6,000+ lots planned)
• Airport economic corridor benefiting from direct rail connectivity
• Northern coastal suburbs with established infrastructure and lifestyle appeal

Land shortage continues driving prices with median land costs up 38.6% annually according to HIA-CoreLogic data. Early positioning in growth corridors provides the strongest capital appreciation potential.

Expert Guidance for Your Land Purchase

At New Gen Homes, we understand that buying land represents one of life’s most significant investments. With 47 years of family-owned expertise in Perth’s market and over 46,000 homes built across Western Australia, we’re uniquely positioned to guide you through 2025’s complex landscape.

Our values of Space, Transparency, and Value drive everything we do – from helping you select the perfect block that aligns with how you want to live, to ensuring you understand every aspect of the purchase process. Each of our new homes is meticulously designed to ensure that beauty and utility are in perfect harmony, making every space not only visually appealing but fully adaptable to your future lifestyle.

If you’re still a little nervous about selecting the right block, one of our knowledgeable New Homes Consultants can help you with your research. We’ll assess site conditions, review zoning implications, explain the new building code requirements, and help you understand the true costs of land development in 2025’s regulatory environment.

Why not drop us a line on (08) 6555 7548 or contact us through our website? We’ll get back to you shortly and help you navigate Perth’s exciting property landscape with confidence and expertise that only comes from nearly five decades of local experience.

At New Gen Homes, you’re not just investing in a house – you’re investing in a relationship built on trust, integrity, and a shared commitment to our community. We’ll be with you every step of the way, from land selection to move-in day.