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Stimulus measures such as the federal government’s HomeBuilder program resulted in sales of housing lots rising by 33% to more than 76,000 in 2021. This is forecast to fall by 43% in 2022. Research4 director Colin Keane says this sharp decline in sales will be the “saving grace” for property developers, since he expects the price of housing lots to rise again in 2022, as demand will continue to exceed supply.
Meanwhile, the Urban Development Institute of Australia (UDIA) has urged state governments to quickly release more land for residential development, in order to avert an affordability crisis in coming years.
From The AFR:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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