Residential land sales in Australia fell in the March quarter, setting a new land sales record, according to the Housing Industry Association (HIA).
The drop in sales could be attributed to the drop in the number of new homes, reflecting the slowdown in the market in 2018 and 2019, according to IHMI chief economist Tim Reardon.
"While the volume of sales has decreased considerably, this is not reflected in the change in the median price of land. Nationally, the weighted median price increased 0.9% between March and December, "said Reardon.
The scarcity of land is one of the factors that has led to rising house prices over the last few decades. According to Reardon, enough land is needed to prevent economic affordability from deteriorating,
The steady trend of declining vacant land sales, while population growth remains strong, demonstrates the need for improved planning policies and strategies in conjunction with a strategic infrastructure plan, according to Tim Lawless, director of research at CoreLogic.
"More recently, real estate credit and housing prices have shown signs of stabilization. CoreLogic data released in June showed a slight monthly increase in housing values ​​in Sydney and Melbourne. With interest rates potentially even lower and demand for housing through continued high population growth, we could potentially see (upward) pressure on vacant lot prices in the second half of 2019 ", said Lawless.
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