The Urban Development Institute of Australia (UDIA) launched the ninth annual State of the Land Report at the 2017 UDIA National Congress in Perth.
The report said Melbourne’s greenfield market continue to outperform other capital cities, with almost 40 per cent of the nation’s annual lot sales in Melbourne, and the median lot price remaining lower than the national median.
However, the report revealed that the market’s relative affordability was being threatened by growing demand.
“Rising demand has resulted in a strong increase in lot prices, a further reduction in lot sizes and, going into 2017, just 1.04 months of available trading stock, which is the lowest level of immediately available supply for six years,” UDIA (Vic) CEO Danni Addison said.
“If State Government can make common-sense decisions to enable a consistent supply of land, healthy levels of competition and reasonable tax rates, then we can protect Melbourne’s affordable land market.
“There remains a critical issue with the constraints the industry faces in bringing sites to market after they receive a planning permit.
"There is a serious need for state and local governments to focus on improving this process by removing unnecessary constraints associated with releasing new lots," Ms Addison said.