The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OtherStaff WriterTue 19 Apr 16

More Signs Of Supply Shortfall In Land Market: HIA

1

The latest edition of the HIA-CoreLogic RP Data Residential Land Report has revealed evidence of severe supply constraints in the market for residential land, according to the Housing Industry Association.

During the December 2015 quarter, the number of residential lot sales across Australia fell by 1.6 per cent, while the median lot prices increasing by 5.2 per cent to $234,600.

Land supply pressures were more pronounced in the capital cities, with lot sales falling by 2.3 per cent during the quarter and the median lot price rising by some 6.6 per cent.

“Conditions in the residential land market are making it more and more difficult to deliver the new housing stock that Australia needs,” said HIA Senior Economist, Shane Garrett.

“Once again, we’ve had another quarter of dwindling land lot sales and pretty stiff price increases – evidence of insufficient supply.”

“We need much greater emphasis on the delivery of new residential land supply involving better models for infrastructure delivery and a real sense of urgency in the planning process,” Mr Garrett said.

“Housing costs are one of the biggest components of most households’ budgets and needlessly jacking land prices up through inaction on supply will make for real hardship over the long term."According to CoreLogic RP Data research director Tim Lawless, the number of vacant land sales has dived by 14 per cent over the 2015 calendar year.

“While the fall in vacant land transactions is substantial at a national level, the drop has been more severe across the capital cities where housing demand is the highest," Mr Lawless said.

"Land sales were down 19 per cent compared to the same quarter a year ago across the combined capitals.”

“If the drop in land transactions was attributable to lower demand we would expect a commensurate fall in selling price. In fact the opposite is true; land prices are rising in the context of lower sales which suggests a supply shortage is at play.”

During the December 2015 quarter, vacant residential land sales are estimated to have declined in Sydney (-22.3 per cent), Brisbane (-20.1 per cent) and Perth (-7.2 per cent).

Elsewhere, the level of sales increased during the quarter: Melbourne (+13.2 per cent); Adelaide (+27.5 per cent); and Hobart (+7.2 per cent).

ResidentialAustraliaPlanningPlanningSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
View All >
Kangaroo Point Aria Canopy House Revised DA Approval hero
Development

Aria’s Revised Tower Greenlit for Inner-City Kangaroo Point

Phil Bartsch
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
The 57-apartment proposal at Camberwell comes as Melbourne’s move toward densification gain pace...
LATEST
Kangaroo Point Aria Canopy House Revised DA Approval hero
Development

Aria’s Revised Tower Greenlit for Inner-City Kangaroo Point

Phil Bartsch
3 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
3 Min
Hotel

Perth Hotel New Role Revealed After $105m Sale

Lindsay Saunders
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/more-signs-of-supply-shortfall-in-land-market