Land sales point to strong year for construction

More-people-are-buying-land-for-residential-housing-_157_87396_0_14100817_300Whether looking for investment potential or a permanent home in New South Wales’ sprawling capital, buyers looking in the Sydney area could be in for some good news in half a year’s time.

According to the most recent Residential Land Report from RP Data and the Housing Industry Association (HIA), a strong bump up in residential land sales during the June quarter of 2014 could result in increased housing stock in the months to come.

“A rise in land sales implies a rise in detached housing construction about six months down the track,” explained RP Data Research Director Tim Lawless in an October 23 release.

According to the report, the 2014 June quarter saw residential land sales increase by 8.4 per cent taking the total growth of land sales during the 2013/14 financial year to 10 per cent.

“That is an encouraging sign for detached and semi-detached dwelling construction in 2014/15,” HIA Chief Economist Harley Dale commented in the same release.

This is set to build on the already stellar home building figures recorded by the Australian Bureau of Statistics earlier this month. The 2013/14 financial year was the strongest in terms of dwelling commencements that NSW has seen in 10 years, with 46,715 dwellings started over the 12-month period.

“The strong result for 2013/14 confirms the important role new home building is playing in an economic revival for NSW,” HIA Executive Director, New South Wales, David Bare said in an October 15 release.

Unsurprisingly, the capital city markets benefited handsomely from the growth seen during this year’s June quarter, with Australia’s six capitals seeing a 5.5 per cent average rise in their land markets. Although regional markets saw stronger growth in terms of sales, the capitals saw the weighted median price for their land increase at a faster level. This illustrates the strong potential for investors to look toward land in some of Sydney’s outer areas.

With both house-starved buyers and enterprising investors finding something to cheer about in this news, it seems just about everyone is set to win.

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