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{{propApi.successMessage}} {{region}} Change locationHousing target depends on faster land supply
Housing target depends on faster land supply
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The HIA-Cotality Residential Land Report provides updated information on sales activity in 52 housing markets across Australia, including the six state capital cities.
“At the same time the number of residential lots sold declined by 7.6 per cent during the quarter," added Mr Devitt.
“This combination of high land prices and weaker sales tells us that Australia isn't running short of demand for housing, it is running short of serviced, shovel-ready land.
“Australia's ability to build 1.2 million new homes will depend less on stimulating demand for housing than on improving the speed and cost at which residential land can be brought to market.
“Established housing prices have softened in recent months as confidence has weakened, and that is likely to slow new housing commencements during 2027. But this should not be mistaken for the end of Australia's housing shortage.
“Population growth remains strong, new households continue to form and Australia continues to build fewer homes than are needed. As confidence returns, these underlying pressures will once again place upward pressure on housing prices unless we improve the responsiveness of housing supply.
“The Residential Land Report also examines two significant reports released in recent months by the Productivity Commission and the Centre for International Economics.
“Both reports reach the same broad conclusion that HIA has consistently identified through the Residential Land Report. In addition to needing more shovel-ready land, Australia needs a housing supply system that can respond quickly when demand changes.
“The reports identify planning delays, infrastructure bottlenecks, regulatory complexity and the cost of bringing land to market as major barriers preventing Australia from building enough homes.
“In this respect, the Federal Government's commitment in the recent Budget to increase investment in enabling infrastructure is most welcome,” concluded Mr Devitt.
Cotality research director, Tim Lawless, noted “the findings of the latest Residential Land Report pre-date the additional uncertainty introduced by the Federal Budget in May, adding another layer of complexity to the housing supply outlook. While the Budget's tax changes may encourage some investors towards vacant land and new housing opportunities, the overall impact on demand remains uncertain.
“With housing market conditions softening through the June quarter, a trend that is likely to persist through at least the second half of the year, some prospective buyers may opt to remain on the sidelines until confidence improves and greater certainty returns to the housing outlook,” concluded Mr Lawless.
Download our latest HIA-Cotality Residential Land Report
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Housing target depends on faster land supply
“The median price of residential land eased by just 0.4 per cent in the March quarter to $403,570, but remains 8.7 per cent higher than a year earlier, growing more than twice as fast as consumer prices and almost three times faster than wages,” stated HIA Senior Economist Tom Devitt.