An ongoing shortage of available land for housing continues to drive up costs, according to research released this week.
The latest HIA-CoreLogic Residential Land Report shows that the median price of a residential lot in Australia reached $351,044 in the June Quarter 2024, rising 2.2% in the quarter to be 6.0% higher than at the same time last year.
HIA Senior Economist Tom Devitt observed that this new all-time high was achieved alongside the sale of just 10,788 residential lots in the quarter, one of the weakest periods of sales in the past 20 years.
“A rise in the price of land, while the volume of sales is suppressed, indicates that the shortage of shovel ready land is deteriorating further”, he said, adding that the shortages are being felt across the country.
In Sydney, the volume of lot sales in the year to June was less than half its decade average, while Melbourne reported one-third of its decade average.
“Melbourne in particular has struggled more than other capitals to see an improvement in lot sales, with buyer confidence likely impaired by additional taxes imposed on land and housing supply, further adding to costs and restricting supply.
“In Brisbane, Adelaide and Perth, the price of greenfield lots of land reached all-time highs in the first half of the year”, Devitt said.
“Brisbane prices are even catching up to Melbourne. These record prices are being reached alongside – at best – unremarkable volumes of lot sales.
“This points to the need to ensure a solid pipeline of shovel-ready land, especially as confidence returns to these markets”, he concluded.
CoreLogic Economist Kaytlin Ezzy noted that over the year to June, approximately 176,000 homes were completed nationally.
“While up by 1.2% year-on-year, this was 8.4% below the decade average and 26.6% below the 240,000 a year needed to meet the Government’s five-year housing target”, she said.
“Without a steady flow of shovel-ready land, it’s likely land prices will continue to trend upwards, and dwelling approvals and completions will continue to fall short of target.”
We hope you have enjoyed this article. It is our pleasure being your real estate agents in Brisbane.
If you would like any assistance or advice, please feel very welcome to get in touch with our Brisbane real estate agents, Brisbane property management team, or Brisbane buyers agents.
