One of the things that can affect affordability of property in Adelaide is land availability. After all, new home building can't get a solid start without a good supply of developable land. Fortunately, the latest State of the Land Report from the Urban Development Institute of Australia (UDIA) signals that this area could be on the rise.
The report outlines and summarises how land transactions are tracking across the country and it could be news for property owners in Adelaide. There were 31 per cent more sales of greenfield lots – or undeveloped residential land – overall in 2014 and Adelaide also performed strongly. Adelaide central saw 18 per cent more lots produced in 2013/2014 compared to 2012/2013, according to the SA Department of Planning and the Office of the Valuer General. There were also 8 per cent more sales of this land over that same period as well.
UDIA National President Cameron Shephard noted that residential lot improvements could be great news for the Australian economy and construction, but governments shouldn't sit back and relax just yet. This is a sentiment echoed by Master Builders South Australia earlier in the year, who already pointed out that there is still work to be done to bring building work up to scratch.
"Building and construction is one of the state's leading employers and biggest industries, so we expect swings and roundabouts, but we would also like to see a more constant cycle of growth to support jobs in the sector," said Master Builders SA chief executive John Stokes in February 25 statement.
The UDIA report does indicate that the increases in land for development aren't quite widespread enough to offset affordability pressures completely, but it confirms that Adelaide median land prices are some of the most affordable in the country.
If you're thinking about constructing rentals in Adelaide, or are interested in how more developable land might affect your current property, get in touch with the team at Ray White Adelaide.