Urban Land Supply Report & CommSec SOST 30-4-2015

Urban Land Supply Report. The release of new residential housing lots is currently undergoing an historic boom across most of Australia’s largest cities, according to the findings of a new report on urban land supply recently released by the Urban Development Institute of Australia (UDIA). The 2015 UDIA State of the Land Report has found that the number of new greenfield residential lots released for sale nationally in 2014 increased by a massive 31 per cent relative to 2013. Departing from previous years’ reports, the 2015 UDIA State of the Land has been undertaken in partnership with Charter Keck Cramer and Research4, utilising data from the National Land Survey Program (NLSP), which adds additional consistency and depth to the report. “The NLSP data highlights that Melbourne and South East Queensland led the way in new residential land supply being made available to purchasers in 2014, with new lots released increasing by 61 per cent in Melbourne, and 55 per cent across South East Queensland,” said Charter Keck Cramer Director, Robert Papaleo. “Sydney also experienced a strong 29 per cent increase in new lots released, although Adelaide experienced a small decrease in greenfield releases.” UDIA National President Cameron Shephard said that whilst the lift in new lots released was great news for new home buyers and the development industry, it was not an excuse for governments to be complacent about new housing supply. “The increased activity identified in the 2015 State of the Land Report is great for the Australian economy, housing affordability, and jobs in the construction industry, but in many ways it has masked a number of underlying problems with Australia’s housing market,” he said. “Nationally, Australia still suffers from a marked undersupply of new housing stock, caused by inadequate investment in urban infrastructure, slow planning and approvals systems, and high taxes and charges on new housing supply. “Even now, we’re still not building enough new homes to meet underlying demand.” “Whilst low interest rates and strong market conditions have helped to create the current uplift in new lots released, these conditions won’t last forever.” “What’s really needed is for governments to take action to remove the underlying structural barriers to new housing supply,” he concluded.
Australia’s Economy and the Property Market. The quarterly CommSec State of States report assesses key indicators to establish the performance of the states and territories. Let’s take a look at how the states and territories are currently shaping up across a range of factors. Economic growth: The Northern Territory is continuing to lead Australia’s economic activity, sitting at just under 45 per cent above its ‘normal’ decade average. This region also has the fastest annual growth rate in the nation, up 3.2 per cent. The next strongest state for economic growth is Western Australia, sitting at 26 per cent above the decade average, followed by the ACT which is up by 15.2 per cent. Both Tasmania and South Australia are seeing modest rates of less than 1 per cent above decade averages. In terms of retail spending, New South Wales has seen the strongest growth being up by 6.3 per cent, followed by Victoria which is up 4.1 per cent and Tasmania with an increase of 2.4 per cent. Construction: Construction work is sitting higher than decade averages in six of the states and territories. The Northern Territory was up almost 171 per cent, followed by Western Australia (33.4 per cent), Queensland (10.7 per cent) and New South Wales (10 per cent). Tasmania is now sitting at 4.7 per cent below the decade averages and the ACT are just scraping by at 0.2 per cent. Population: Annual growth has eased in all states apart from the Northern Territory. Western Australia is looking the strongest with an annual growth rate of 2.12 per cent, however this is trending at 20.3 per cent below decade-average levels. Victoria came in second with a growth of 1.77 per cent, followed by New South Wales at 1.43 per cent. Tasmania has seen the strongest growth rate in 2.5 years at 0.64 per cent. Unemployment: The latest unemployment rates are above their decade averages across all states and territories. Northern Territory has retained its position as the nation’s strongest job market with an unemployment rate of 4.3 per cent, followed by ACT at 4.4 per cent and Western Australia on 5.7 per cent. Tasmania’s unemployment figures appear to be on the improve with the jobless rate falling to a 39 month low of 6.5 per cent. Housing finance: Victoria has taken over the top spot in Australia for housing finance with commitments at 11.5 per cent above the long-term average. Next were New South Wales on 10.4 per cent and Western Australia at 5.5 per cent. Northern Territory remains the weakest market for housing finance with commitments 23 per cent below its decade average. The next weakest was South Australia down 13.7 per cent and Tasmania at 10.8 per cent below its decade average.

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