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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.
Slow start on signature housing target
“Australia commenced construction on just 43,250 new homes in the first quarter of the 2024/25 financial year,” stated HIA Senior Economist Tom Devitt.
“Let’s Build Australia” and get serious about skill shortages
“The focus on Fee Free TAFE is distracting from the real issue facing the supply of housing in Australia. Successive governments have been aware of the persistent and structural skill shortages across key construction trades for decades and the current policy approaches are doing very little to shift the dial,” said HIA Managing Director Jocelyn Martin.
Keeping the dream alive - Greenfield development must be part of a diverse housing mix (NSW)
Reports featured in the media today are a good reminder that home ownership still matters to Australians, and we need to build more housing, of all types to keep the dream of home ownership alive,” said Brad Armitage, HIA Executive Director NSW.
New Year updates for WA
On behalf of all of us at HIA we would like to wish you a very happy 2025! As everyone heads back to work for the new year, we are sharing some exclusive member updates to get you ready for what lies ahead and perhaps what you might have missed while you were away.