Affordability pressures hit first timers
First time buyers are being priced out the market as affordability constraints worsen.
According to a new study by the National Land Survey Program, at the end of last year, just three out of 10 lots for sale in new housing estates were accessible to average-income first home buyers.
Ongoing affordability issues are prevalent in Melbourne, with just 26 per cent of lot sales meeting the first home buyer affordability benchmark of $200,000 – down from 90 per cent two years ago.
Queensland fared worse than Melbourne, while Adelaide and Perth were the only two capital cities found to be building enough affordable land in new estates.
Developers have repeatedly blamed soaring prices on dwindling land supply, calling for more rural land to be rezoned for housing and faster planning processes for new estates.
Residential land sales fell by 74 per cent in the year to September 2010, yet median land prices grew by 25 per cent to $225,750 in the year to last December, despite house blocks getting smaller.