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{{propApi.successMessage}} {{region}} Change locationConstrained land supply sees knock-down rebuild market grow
Constrained land supply sees knock-down rebuild market grow
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The HIA-CoreLogic Residential Land Report provides updated information on sales activity in 51 housing markets across Australia, including the six state capital cities.
“Over the year to the March Quarter 2022, median lot prices increased by 19.7 per cent. This is not a normal increase – it is the strongest annual growth rate since 2004.
“Constrained supply of land will limit housing activity in Greenfield areas from mid-2023 onwards.”
“New data released by the ABS on demolitions suggests that knock-down rebuilds and small redevelopments are around 25 per cent of the market for house and townhouse builders in New South Wales. Encouragingly, this segment of the market appears to be growing rapidly, creating new opportunities for the industry,” added Mr Ward
According to CoreLogic Economist Kaytlin Ezzy: “The scarcity of available residential land continues to be a driving factor across Australian land markets, with land prices surging at a time when the number of lots sold is declining. While increasing interest rates, rising construction costs and increased uncertainty, particularly across the building industry, has likely smothered some land demand, the surge in land prices suggests that those that want to build are finding it difficult to secure lots.”
“With land often taking more than a decade to move though the development pipeline, it’s unlikely we’ll see any material change in land supply for some time.” says Ms Ezzy.
More land supply to help Tasmania get back on track
HIA has been calling loudly on the State Government to release more land for new housing, as it is a fundamental element in delivering new homes and supporting housing affordability.
Home owner grants boosted in NT
Are you aware of the first home owners grant has been increased until 2026? Did you know grants are also available for existing homeowners when building new homes? Find out the latest on the HomeGrown Territory grant and FreshStart New Homes grant today.
Victorian housing lags the smaller states
“Victoria is behind Queensland, Western Australia and South Australia in HIA’s latest Housing Scorecard, reflecting a dramatic change in fortunes over the last five years,” stated HIA Executive Director Victoria, Keith Ryan.
Cost-of Living Focused 2025/26 Victorian Budget Misses Opportunity to Boost Victorian Home Building
This year’s State Budget has largely missed the opportunity to improve the environment for home building and contains negligible measures to increase housing supply, address housing affordability and lower the costs facing new home builders.