Housing Supply Falling Along The East Coast
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Housing Supply Falling Along The East Coast

Supply-chain issues are affecting house-and-land packages.

By Kanebridge News
Wed, Mar 2, 2022Grey Clock 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.

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Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.