New data on greenfield land sales across Greater Melbourne shows that lot sizes are shrinking and median prices are rising, amid land shortages and rising construction costs:
In Melbourne, the country’s biggest residential land market, lot sales reached 21,000 in 2021, while prices increased 15 per cent as first home buyers and others priced out of the established housing headed to the outer suburbs.
“This year, we expect to see more developers begin to drip-feed vacant land releases to give them time to catch up on construction and lower long-term risk factors,” said Luke Kelly, managing director of project marketing at RPM Real Estate Group…
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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.
