Federal, state and local governments have been urged to ensure there is an efficient supply of affordable land... Record lows for both rental growth and yields...
Australians paying more for less land
Federal, state and local governments have been urged to deliver a stable policy environment in 2016 in an attempt to ensure there is an efficient supply of affordable land to meet Australia’s housing needs.
According to the 2016 State of the Land Report, released yesterday by the Urban Development Institute of Australia (UDIA), buyers in Australia are on average paying significantly more for land, despite the average lot size falling.
According to the report, the average lot size in Australia at the end of 2015 was 453 square metres, which is 4.3% smaller than the average size as of the end of 2014 and 12.2% smaller than it was in 2010.
At the same time, the average price per lot was $246,432, which is up 4.9% over the past 12 months and 30.9% since 2010.
UDIA president Michael Corcoran said, “Changes made to the macroprudential regulations and foreign investment rules, and speculation over tax changes like the GST, negative gearing and capital gains tax, and talk of imposing ‘value capture’ have the potential to cause perverse effects in 2016 along the eastern seaboard, and highlights just how susceptible the property market is to uncertainty in the policy environment.”
Record lows for both rental growth and yields
Australian landlords have been warned to expect a fall in rents during 2016, as the effects of low wage growth, slow population growth and the construction boom are all felt.
According to the latest CoreLogic RP Data Rental Review report, Australia’s combined capital city weekly rental rate was $485 in February after recording no growth over the previous 12 months.
In the 12 months to February 2015, rents across Australia grew by 1.7%.
“With construction activity set to peak over the next 24 months, and with many new properties still to settle, there is a real possibility that rental rates will fall over the coming months,” CoreLogic RP Data research analyst Cameron Kusher said.
“Based on our expectations, landlords have little scope to lift rental rates while for renters, it potentially means more surety in securing accommodation and the potential to upgrade into a higher level of accommodation for a similar cost,” Kusher said.
You may have missed:
Deanna Ezzy: Broking in the fast lane
Why mindfulness works wonders
Breaking the shackles of the big banks
Federal, state and local governments have been urged to deliver a stable policy environment in 2016 in an attempt to ensure there is an efficient supply of affordable land to meet Australia’s housing needs.
According to the 2016 State of the Land Report, released yesterday by the Urban Development Institute of Australia (UDIA), buyers in Australia are on average paying significantly more for land, despite the average lot size falling.
According to the report, the average lot size in Australia at the end of 2015 was 453 square metres, which is 4.3% smaller than the average size as of the end of 2014 and 12.2% smaller than it was in 2010.
At the same time, the average price per lot was $246,432, which is up 4.9% over the past 12 months and 30.9% since 2010.
UDIA president Michael Corcoran said, “Changes made to the macroprudential regulations and foreign investment rules, and speculation over tax changes like the GST, negative gearing and capital gains tax, and talk of imposing ‘value capture’ have the potential to cause perverse effects in 2016 along the eastern seaboard, and highlights just how susceptible the property market is to uncertainty in the policy environment.”
Record lows for both rental growth and yields
Australian landlords have been warned to expect a fall in rents during 2016, as the effects of low wage growth, slow population growth and the construction boom are all felt.
According to the latest CoreLogic RP Data Rental Review report, Australia’s combined capital city weekly rental rate was $485 in February after recording no growth over the previous 12 months.
In the 12 months to February 2015, rents across Australia grew by 1.7%.
“With construction activity set to peak over the next 24 months, and with many new properties still to settle, there is a real possibility that rental rates will fall over the coming months,” CoreLogic RP Data research analyst Cameron Kusher said.
“Based on our expectations, landlords have little scope to lift rental rates while for renters, it potentially means more surety in securing accommodation and the potential to upgrade into a higher level of accommodation for a similar cost,” Kusher said.
You may have missed:
Deanna Ezzy: Broking in the fast lane
Why mindfulness works wonders
Breaking the shackles of the big banks
