The number of land sales in Australia declined during the first quarter of the year, which could indicate a land shortage that may restrict construction activity, according to a joint study by the Housing Industry Association and CoreLogic.
In the first quarter of the year, land sales fell 31.2%. Compared to the previous peak reached in the September 2020 quarter, land sales are down 42.5%.
"The drop in sales represents a shortage of available land as other leading indicators show that there continues to be a significant number of new homes entering the construction pipeline", HIA economist Angela Lillicrap said.
Lillicrap said the surge in demand for residential land from HomeBuilder prompted developers to offer as many shovel-ready lots as possible.
"This limited the prices somewhat during the short period of the program, but the impact of an inadequate land supply can now be seen in the prices for the March quarter," he said. she stated.
Tim Lawless, research director at CoreLogic, said the 4.7% increase in the median price of residential land – the largest since 2006 – was an indicator that demand has already exceeded demand. ; offer available.
“The surge in single-family housing approvals to record levels has resulted in a substantial increase in demand for residential land and it will likely take several years for the pipeline of approved homes to be completed. In the meantime, land prices could rise further, "he says.
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