Australia’s land supply policy is not keeping up with the country’s burgeoning population, one economist has warned.
The September 2015 edition of the HIA-CoreLogic RP Data Residential Land Report has revealed that supply constraints in the residential land market are intensifying, with the sale of residential lots falling by 2.7 per cent and median lot prices rising by 4.2 per cent during the September quarter.
Shane Garrett, senior economist at the Housing Industry Association (HIA), said the report provides “a sobering indictment” of how land supply policy is not keeping pace with the housing needs of Australia’s growing population.
“The combination of strong land price growth yet declining transaction volumes are hallmarks of a market constrained by supply bottlenecks,” he said.
“Ineffective land supply policy will limit Australia’s long-term growth potential and erode competitiveness by forcing costs up.
“The key supply-side issues like planning delays, efficient infrastructure provision and the mammoth taxation burden on new housing need urgent attention. Otherwise, living standards for Australia’s 24 million residents will never reach their full potential.”