Land-grab as low rates attract new buyers

The number of Australians buying land has risen steeply as buyers take advantage of afford­ability.

Eliza Owen from CoreLogic warns that it may not be long until demand drives prices higher. Picture: Supplier

The number of Australians buying land has risen steeply as buyers take advantage of afford­ability.

Land sales rose 46 per cent in the six months to September across the country, according to the latest data from the Housing Institute of Australia and CoreLogic. The 10,563 lots sold during the period were a substantial turnaround from the March quarter, when sales were the lowest on record.

The pick-up coincided with the turnaround in the housing market midway through last year, soaring more than 10 per cent in Sydney and Melbourne since June. But the fierce uptake has yet to have as much of an impact on land prices.

However, CoreLogic’s Eliza Owen warned it may not be long until demand drives prices higher.

“Demand for land and dwellings has rebounded strongly from June last year, which is also reflected in a 6.7 per cent rebound in national dwelling values over the past seven months,” she said.

The rebound in the housing market, which has been primarily felt in east coast markets, follows a relaxation in lending standards and record low interest rates.

The Morrison government’s first-home buyers lending scheme has proven a hit with market ­entrants, with more than half of the 10,000 slots already filled.