Michelle has just released the Australian Residential Development Review which looks at the key development drivers across low, medium and high density. With most of the Australian housing market amid correction mode, off-the-back of stricter lending hurdles, developers are now considering other options for the sites such as commercial, hotel and student accommodation. Michelle looks at how this will impact low, medium and high-density housing sectors. The key findings are:
• Residential development site sales tallied to $6.1 billion across Australia in 2018, down 36% in the past year. In 2018, offshore buyers purchased 43% of all development sites, by value.
• Across Australia, high-density site sales ranged significantly from an indicative $40,000 to $198,200/per apartment at the end of 2018; with an average of $86,200/per apartment. New apartment prices ranged from an indicative $5,500 to $13,700/sqm at this time; with an average of $8,200/sqm.
• The trend towards medium-density has tapered back in 2018 as housing becomes more affordable along the east coast. By value, the proportion of Australian medium-density development sites sold was 6.1% in 2018 compared to all sites; down from 11.7% one year earlier.
• Throughout 2018, 47,669 new low-density residential land lots were released across the major Australian capital cities, down 13.8% on the previous year. The weighted median price for a land lot stood at $320,500 in 2018; an annual increase of 6.8%.