National Greenfield Market Update
The National New Land Market is defined as being Melbourne, Adelaide, Perth, Sydney, ACT and South East Queensland
New Land Sales- Record
The total volume of new land sold for the June 2017 quarter was 5,033 lots. This represented a 5.5% lift in total sale volumes for the quarter.
Compared to June 2016, the market has lifted by 6%.
On an annualized basis, the market is currently selling just short of 60,000 blocks of land per year.
The total result has been supported by, improved or near record level, sales from all markets. Canberra dropped the ball!
New Land Prices
The average weighted median lot price for all markets was $284,000. On average you would get 416m2 of land or $682 per sqm.
Price growth for the quarter was zero percent. Annually, 9%.
This quarter, Perth and Sydney kept their foots on the price brake, while SEQ played around with pricing and Melbourne, well! They could not help themselves, like kids let lose in a gelatti shop.
What Does it Mean?
The market has posted a new record in terms of sale volumes. This level of activity will move through the the development phase and then feed into the building industry.
The timing of this will be 12-18 months, with a good proportion of product sold this quarter being titled at the back end of 2018. Shorter time period for SEQ and PERTH.
The residential building sector can be confident of sustained activity right through to mid 2019. This will mean that all the companies that have strong links to the building sector should experience strong sales over the next financial year.
Note: The above does not constitute financial advice.
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