A dramatic slump in both house-and-land packages and new apartments sales will reduce the future supply of housing and exacerbate the rental crisis.
A dramatic slump in new home sales will exacerbate the national rental and affordability crisis and put further pressure on the ability of new housing supply to meet future demand, the Urban Development Institute has warned in its latestAccording to the benchmark report, over the 2022 calendar year, greenfield lot sales almost halved and settled apartment sales fell to their lowest level since the global financial crisis as buyer demand plummeted, thanks to higher interest rates, surging...
In contrast, the prices for new apartments flatlined across the combined capital cities, ending last year at a median of $569,500 as unit completions fell 4 per cent to 45,000 and as settled sales dropped 34 per cent – the lowest level in 12 years.“Underpinning the weak multi-unit sales performance has been the ongoing retreat of investors and pressure on developers from unprecedented construction cost increases, financing challenges and productivity delays,” the UDIA Report said.
Looking ahead, the UDIA forecast new residential supply to retract by about 7 per cent this year to about 35,700 completions and then to decline marginally to about 33,700 in 2024.In Sydney, greenfield land sales slumped 44 per cent because of the drop in demand and land supply constraints; multi-unit sales fell 57 per cent.
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