The housing market recovery felt during the second half of 2019 also led to strong growth in sales of residential land, according to the latest report from the Housing Industry Association (HIA) and CoreLogic.
Residential land sales increased 45.9% in the final months of the year from their all-time high in the March 2019 quarter, according to the HIA-CoreLogic Residential Land report.
"The first half of 2019 was particularly difficult for the residential construction industry, with falling house prices, election uncertainty and credit crunch all weighing on the economy. trust, "said Angela Lillicrap, economist at HIA.
Demand for land and housing rebounded strongly from June, resulting in a 6.7% rebound in the national value of housing in the past seven months.
This renewed confidence was boosted by the three rate cuts made by the Reserve Bank of Australia last year and the election results which allayed concerns about the negative reduction in gears and earnings. in capital, said Eliza Owen, director of residential research at CoreLogic.
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"The prices of land and housing are expected to increase further in 2020, although this may be slightly mitigated by higher market entry levels, as sellers profit from price increases", said Owen.
Lillicrap said that the shortage of land is one of the factors that have driven up house prices over the past decade. In fact, land prices in some of the capitals have increased significantly since 2009.
For example, the median price of land in Sydney fell from $ 272,750 in September 2009 to $ 445,000 the same month last year.
Melbourne also experienced dramatic growth in land prices over 10 years, from $ 167,000 to $ 350,000.
"With the demand for land repossession, it is important that an adequate supply is maintained each year to avoid undue pressure on the affordability of housing," said Lillicrap.
The table below shows the comparison between the median land prices in 2009 and 2019:
Top suburbs:
East victoria park
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Nundah
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menai
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Toowong
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Midland
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