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{{propApi.successMessage}} {{region}} Change locationMore land is required to build one million new homes over five years
More land is required to build one million new homes over five years
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Excluding the prior two quarters, this is the fastest rate of annual growth since 2004,” said HIA Senior Economist, Nick Ward
The HIA-CoreLogic Residential Land Report provides updated information on sales activity in 51 housing markets across Australia, including the six state capital cities.
“Prices appear to have risen close to consumer’s capacity to purchase land. The increases in the cash rate will likely further constrain consumer’s ability to buy, risking a reduction in the number of homes expected to be built.
“In order to achieve the Australian government’s target of building one million new homes over five years from 2024, the supply of land will need to improve in the near future and the cost decline.”
According to CoreLogic Economist Kaytlin Ezzy: “Despite approximately 975,000 homes being completed over the five years to June 2022, the government’s goal to complete one million new homes is an ambitious one, especially given current land supply.
“While the interest rate rises seen over the past six months will have put some downwards pressure on land prices, until there is a material change in supply, median land prices will likely remain elevated” says Ms Ezzy.
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