Increased Demand For Residential Land Set To Have A Positive Impact On The Acreage Market

Even though Australia’s population is still growing at a rapid rate, with the preliminary estimated resident population of Australia at 30 June 2019 being 25,364,300 people which was an increase of 381,600 people in a year according to Australian Bureau of Statistics, yet residential land sales slowed significantly during this period which had a stalling effect on development and construction.

Recent figures have shown that there has now been a significant turn around and residential land demand has increased 45.9 per cent since March 2019, according to HIA economist Angela Lillicrap and CoreLogic's Head of Residential Research Eliza Owen.

“The first half of 2019 was particularly rough for the residential building industry, with falling house prices, uncertainty surrounding the election and the credit squeeze all weighing on
confidence,” said HIA Economist Angela Lillicrap. 

“Leading indicators in the final months of 2019 show that the housing market has improved and the increased demand for residential land is further proof of this. A shortage of land is one of the factors that has driven home prices to increase over the past decade.”

"With demand for land picking up, it is important that an adequate supply is maintained each year to avoid undue pressure on housing affordability.”  

According to Eliza Owen, CoreLogic’s Head of Residential Research demand for land and dwellings has rebounded strongly from June last year, which is also reflected in a 6.7 per cent rebound in national dwelling values over the past 7 months.”

Source: HIA and CORELOGIC

"Prices for land and housing are likely to rise further over 2020, though this may be slightly mitigated by higher listing levels coming to market, as sellers take advantage of price increases.” their report said

With the median lot price in Sydney increasing over the past decade from $272,750 to $445,000 along with the 45.9 per cent increase in demand since March last year, we are currently experiencing an increase in demand for rezoned acreage from developers.

With developers now back in the market again, there is now an excellent opportunity for acreage owners to create a more competitive environment amongst the developers to ensure that they achieve the best outcome when selling their rezoned acreage.

As more sales start to take place within the rezoned areas, many of these property owners will be looking to relocate onto acreage around the fringes of the development area or further out to get away from all the construction and congestion.

This will start to push prices as more and more buyers see acreage an excellent opportunity for future growth as well as enjoying a quieter lifestyle.

If you have an plans to sell your acreage property, right now could be a good time to catch up to discuss the best way forward and how to maximise the value of your property.

If you’ve got any questions about how to take advantage of the current market and achieve the best outcome, don’t hesitate to get in contact with me.

Regards

Greg Vincent