Sydney

Sydney New Land Market Snapshot – March 2017

By May 4, 2017 No Comments

“Smaller estates holding back performance”

The ongoing performance of the Sydney land market is going to be heavily influenced by the role smaller estates play.
Markets such as the North West where estates are smaller and are “Package Only” estates.
This will mean that the full spectrum or efficiency of the industry will go unused.
Small builder estates tend to use fewer builders, hence slowing the sale rate down.

Outlook

The outlook for the Sydney market is for more of the same. There is no major new supply coming to market, which means that the majority of the heavy lifting will need to be undertaken by the larger projects.
These bigger projects are under pressure to settle on lots already sold, so it is likely that sale volumes will contract further over the coming months.
As already mentioned, the market is becoming more reliant upon smaller estates which are typically packaged estates. These types of estates will by nature be slower to turn land into supply due to their inability to maximise the full spectrum of construction capacity.
Pricing is expected to remain flat in line with land prices being considered fully priced and also the fact that there is still significant pressure on the supply side of the equation.