HIA: Demand for residential land drops

By |

Residential lot sales in Australia dropped during the March quarter, setting a new record low for land sales, according to the Housing Industry Association (HIA).

The fall in sales could be attributed to the decline for new homes, reflecting the market’s downturn during 2018 and 2019, according to HIA chief economist Tim Reardon.

“While the volume of sales decreased considerably, this was not reflected in the change in the median price of land. Nationally, the weighted median price increased by 0.9% in the March quarter, compared to the December quarter,” Reardon said.

The land shortage is one of the factors that has caused home prices to increase over the past decades. An adequate supply of land is required to avoid affordability from deteriorating, according to Reardon.

The consistent trend towards fewer vacant land sales, at a time when population growth remains strong, shows the need for improved town planning policies and land releases strategies that run parallel with a strategic infrastructure plan, according to CoreLogic research director Tim Lawless.

“More recently, housing credit and housing prices have shown signs of stabilising. CoreLogic data to June reported a subtle monthly rise in housing values across Sydney and Melbourne. With interest rates potentially heading even lower and housing demand via population growth remaining high, we could potentially start to see some (upward) pressure on vacant land prices over the second half of 2019,” Lawless said.

 

Top Suburbs : trott park , campsie , north epping , wentworthville , reservoir

SHARE

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here