06-08-2014, 10:34 PM
Residential land sales reach highest level ever in last financial year
KYLAR LOUSSIKIAN THE AUSTRALIAN AUGUST 07, 2014 12:00AM
THE sale of new residential land reached its highest level ever in the last financial year, but it could be at its peak, according to an internal survey prepared for the home building industry.
The National Land Survey Program reports that in the last quarter of the year there were 4089 lot sales a month, significantly higher than the levels recorded at any point since the global financial crisis.The survey also warns that land stock ready for sale is at a record low.
The figures, compiled by research firm Research 4 by surveying growth locations around each capital city, also points to a widening affordability gap between Sydney and other capitals.
Adelaide was the most affordable city for the purchase of new land, with 65 per cent of all lots priced under $200,000, followed by Melbourne, southeastern Queensland, and Perth.
Affordability of new land in Sydney was substantially below other capitals, with only 7 per cent of land available for construction priced under $200,000.
Alan Soutar, the NSW and Victorian executive general manager of home-builder AV Jennings, said it would be difficult to find anything under $200,000 in areas closer to CBDs.
“Affordability is one of the key issues for us, and our ability to access a long-standing traditional marketplace is more restricted on the back of the cost of bringing on development of land,” he said. “The cost of building a house has stayed, over many years, in line with inflation, but the lack of affordability is being driven by the land component.” Mr Soutar said that two decades ago the land component of a house and land package was about 40 per cent of the cost. This had increased to 60 per cent, but this differed between cities.
Although the number of sub-$200,000 lots in Melbourne fell by 46 per cent in the last quarter, Victorian Planning Minister Matthew Guy said the state had a strategy to “put a lot of supply through” in growth corridors.
NSW Planning Minister Pru Goward said Sydney was building more new homes now “than at any time in the decade”.
“It’s nonsensical to simply compare the cost of land in Sydney with that of cities like Perth and Brisbane,” she said. “Naturally, incomes are higher in Sydney, reflecting the increased opportunity that comes with living in Australia’s global city.”
KYLAR LOUSSIKIAN THE AUSTRALIAN AUGUST 07, 2014 12:00AM
THE sale of new residential land reached its highest level ever in the last financial year, but it could be at its peak, according to an internal survey prepared for the home building industry.
The National Land Survey Program reports that in the last quarter of the year there were 4089 lot sales a month, significantly higher than the levels recorded at any point since the global financial crisis.The survey also warns that land stock ready for sale is at a record low.
The figures, compiled by research firm Research 4 by surveying growth locations around each capital city, also points to a widening affordability gap between Sydney and other capitals.
Adelaide was the most affordable city for the purchase of new land, with 65 per cent of all lots priced under $200,000, followed by Melbourne, southeastern Queensland, and Perth.
Affordability of new land in Sydney was substantially below other capitals, with only 7 per cent of land available for construction priced under $200,000.
Alan Soutar, the NSW and Victorian executive general manager of home-builder AV Jennings, said it would be difficult to find anything under $200,000 in areas closer to CBDs.
“Affordability is one of the key issues for us, and our ability to access a long-standing traditional marketplace is more restricted on the back of the cost of bringing on development of land,” he said. “The cost of building a house has stayed, over many years, in line with inflation, but the lack of affordability is being driven by the land component.” Mr Soutar said that two decades ago the land component of a house and land package was about 40 per cent of the cost. This had increased to 60 per cent, but this differed between cities.
Although the number of sub-$200,000 lots in Melbourne fell by 46 per cent in the last quarter, Victorian Planning Minister Matthew Guy said the state had a strategy to “put a lot of supply through” in growth corridors.
NSW Planning Minister Pru Goward said Sydney was building more new homes now “than at any time in the decade”.
“It’s nonsensical to simply compare the cost of land in Sydney with that of cities like Perth and Brisbane,” she said. “Naturally, incomes are higher in Sydney, reflecting the increased opportunity that comes with living in Australia’s global city.”