WA land supply soars, but prices keep rising PDF Print E-mail

Here's a piece of information that contradicts the development lobby's claim that land will be cheaper if governments increase the supply of land - and it comes from the development lobby.

The Urban Development Institute of Australia has published data from Western Australia - showing that the number of vacant allotments made available for sale increased 85.5% in the March quarter.

According to the development lobby, especially the Housing Industry Association, this should result in land prices dropping. The HIA has been banging on for some time about the need to increase land supply to lower land prices, and thereby improve affordability.

But in Western Australia land prices rose 8% in the March quarter - that's an annual rate of over 35% - despite the massive increase in land supply.

It's just one more piece of evidence showing how simplistic and self-serving the HIA and others are being in the arguments.


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