Residential Land Sales Continued to Decline in Perth
21 July 2011
Although Perth is still the most expensive land market in Australia, there has been a massive fall in the number of land sales during the first quarter of this year. According to figures released by the Housing Industry of Australia, residential land sales in Perth have declined for a sixth consecutive period during the first quarter.
Throughout the whole of Australia residential land sales have declined by 42.6% during the first quarter of 2011, but in Perth this figure increases to 49.1%, and land values are now at $532 per square metre. The report suggests that the land supply has been badly managed by the state government who is failing to recognise demand and supply issues.
The Housing Industry of Australia is predicting a further 3% decline during this year and 2012, and feels this is due to state government land release programs being inefficiently planned so that targets cannot be met. In spite of this decline many Australians are struggling to afford homes, and property prices are predicted to fall into late 2012.
House prices across the country are continuing to decline, and dropped an average of 2% in the second quarter. The largest declines were seen in Queensland at -3.7%, and Victoria, where prices declined by -2.4%. A recovery in house prices is being predicted for June 2013, although only a modest growth of 0.5% is forecast.
The Australian rental market is relatively healthy with rents predicted to increase by 4.4% over the next couple of years, although owner occupiers make up 46% of the housing market. Resident investors hold a 28% share, down from 34% in March. First-time buyers only account for 17% of the market as credit constraints continue to hold back buyers.