Prices through the roof
The surge in land and housing costs has been attributed to rapid population growth, driving the price for property and land, particularly in cities, over the past decade. In Sydney, the per square meter price of land has more than doubled since 2010, while the number of new property listings has declined over the years. A shortage of residential land available to build on has exacerbated the housing affordability crisis in Australia.
A cooling market?
The auction clearance rate across major cities in Australia ranged from between 30 and 54 percent in 2019. While the market has been sluggish over the past year, latest figures show the market may be set to boom once again. In Sydney and Melbourne, sales had increased in the month of June in 2019, accredited to many recent developments following the federal election including interest rate cuts, capital gains concessions as well as the continuation of negative gearing.