Housing Supply Falling Along The East Coast
Supply-chain issues are affecting house-and-land packages.
2 min
A dire undersupply of new housing lots is on the horizon due to construction delays and is expected to dire up the price of house-and-land packages on the Australian east coast this year following a surge in prices in 2021.
Housing analyst Colin Keane, a director at Research4 expects months of delay.
“It has no supply and customers are still lining up,” said Mr Keane.
Surprisingly, Sydney didn’t take top prize for the most lot sales but did take the ribbon when it came to price growth, up 34% in 2021 from $534,000 from $430,000 for house-and-land packages.
According to Mr Keane, a lack of active supply drove a 50% drop in sales volumes in the latter half of 2021 following record sales volumes in the first half of the year.
“The lack of supply resulted in an estimated nine months of demand being left on the table.
’The number of active [housing] estates dropped from 150 to 75 in one quarter, with a further 21 expected to end in early 2022. [This is] a massive impact on capacity to supply [new lots], he told Financial Review.
Further, the average size of a Sydney housing estate had slumped from a long-term average of 275 to just 78 lots in 2021.
Melbourne, the country’s biggest residential land market, saw 21,000 lot sales in 2021. Prices increased 15% as first home buyers and others priced out of established housing headed to outer suburbs.
Elsewhere on the east coast, south-east Queensland developers are benefitting from the undersupply situation in Sydney and influx of Melbourne buyers.
“Average land sales for 2021 were 41 per cent higher than the past seven-year average … and prices went up 16%” Mr Keane said.
South-east Queensland loot sales approached Melbourne levels with 1900 per month in the June quarter, there was still not enough to meet demand with Mr Keane estimating four months of demand left in the market that he expects will drive up prices in the short term.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
A new digital real estate site promises a full view of the housing sector, even those places not on the market
2 min
Hot on the heels of the launch of View Media Group last year, Australia’s newest proptech digital media company has gone live with its consumer-facing real estate site, view.com.au.
The new site offers a ‘freemium’ model allowing vendors to list their properties for free while having the option of further upgrades for agents looking to enhance their listings.
VGM executive chairman Anthony Catalano said the model was a ‘game changer’ in the digital real estate space.
“While VMG is much more than a portal play, it’s critical that we have a consumer-facing brand that will act as the front door to attract consumers and in turn allow us to offer products and services in a range of verticals across the property ecosystem,” Mr Catalano said. “Our plan is to create a digital real estate superstore under the new View brand that will play in the $300 billion adjacency categories rather than solely focus on the $1
billion of digital property advertising.”
“We’ve listened to the industry and the time is right for an offer to come to market with an alternative model that addresses the real estate industry’s concern at the continually
escalating price of advertising.”
The View portal is available through app stores and will include properties across the country, not just those on the market right now.
“That means view.com.au will showcase more than 11 million properties in Australia compared to some of the portals which feature around 140,000 properties for sale,” Mr Catalano said. “From Day 1 we will provide consumers with a complete view of the market.’’
View has worked with mapping partner Nearmap to create the ability to have a comprehensive overview of all properties.
“We’ve had a look globally at best practice search for property and we’ve consumer tested a range of options and without doubt the preferred experience is map-based search,” View CEO Toby Blazs said. “So unlike others in the market who default consumers to a list view, we’ll default our search results via a map.”
Mr Catalano said the innovative site was designed to be a true disruptor in the proptech sector.
“VMG continues to grow and tick off the key parts of its strategic plan,” he said. “We are well on the way to forming a global-first conglomerate of proptech assets including portals, ad tech, lead generation, lead management solutions, media planning and buying, AI services, data and connections all under the one roof.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
