A severe undersupply of new housing lots due to construction delays is expected to drive up the prices of house-and-land packages on the east coast this year, after they surged in 2021.
In Sydney, veteran greenfield housing analyst Colin Keane likened the market to a “skydiver without a parachute”.
“It has no supply and customers are still lining up,” said Mr Keane, a director at Research4.
While Sydney did not win the medal for most lot sales, he said it was a “clear winner” when it comes to price growth, recording a 34 per cent rise in 2021 to $534,000 from $430,000.
Mr Keane said a critical lack of active supply drove a 50 per cent drop in sales volumes in the second half of 2021 after record sales volumes were recorded in the first half of last year.
“The lack of supply resulted in an estimated nine months of demand being left on the table.
’The number of active [housing] estates dropped from 150 to 75 in one quarter, with a further 21 expected to end in early 2022. [This is] a massive impact on capacity to supply [new lots].
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