RESIDENTIAL PROPERTY
WHILE land prices have stabilised across the country, underlying shortages continue as affordability and consumer confidence takes a hit.
According to the HIA-CoreLogic Residential Land Report, which looks at sales activity in 51 housing markets across the country...
HIA senior economist, Tom Devitt, called the stabilisation a “relief” after new residential land prices recorded 26% of growth in under two years.
At the same time, sales of new residential land also pulled in record low numbers over the quarter, with just 4,405 lots selling.
“This stabilisation of new residential land prices and falling sales volumes do not reflect an end to underlying shortages of land....
This comes after RBA governor Philip Lowe in November apologised to the thousands of Australians who took out mortgages on the...
The weighted median price of residential land for the capital cities was down 1.9% for the quarter and up 10.7% for year at $342,072.
Over the last two quarters, Greater Sydney has been a major driver for declines in the median price of residential land...
Greater Melbourne followed in terms of price, with lot prices rising over the September quarter to a new high of...
Greater Hobart’s median price of residential land was up 16.7% over the in the quarter to a new high of...
Greater Adelaide reached a median price of $319,990 over the quarter, up 6.7% from the June quarter and...
Greater Brisbane saw a quarterly decline of $240,000, though still up 1.3% on the previous year.
The capital city weighted median lot size increased by 3.0% in the September quarter and to 11.2 % annually to 453sqm, its largest size since 2013.
Greater Hobart reported the largest residential lot size of any capital at 670sqm, up 3.9% for the quarter and down 0.7% annually.
While Greater Adelaide saw the largest increase over the quarter at 25.7%, up 53.4% for the year, at 579sqm.
Greater Brisbane was steady over the quarter at 546sqm, for an annual increase of 21.3%. Greater Melbourne saw a quarterly increase of 5.0% at 420sqm, for an annual increase also at 5.0%.
Finally, Greater Perth had the smallest median residential lot size out of the capital cities at 375sqm, down 0.8% for the quarter and stable over the year.
While the remainder saw negative growth, with Greater Brisbane at -30.8%, Greater Sydney at -5.0% and Greater Perth at -1.7%.
“A recovery in demand depends largely on the RBA’s future cash rate decisions. Once demand recovers, the underlying shortage of...