This article is from the Australian Property Journal archive
LOOKING to capitalise on pent up demand, Oliver Hume is set to launch over $1 billion in new land projects before the years end.
Over the fourth quarter of the calendar year Oliver Hume will launch seven new projects on behalf of developers, spanning 4,000 lots with a gross realisation of more than $1 billion.
Developers are pushing out these land projects as lockdowns lift across the country, with Victoria, Queensland and South Australia being most prominent in the new releases.
“Market activity and sales rates have been pretty stable throughout the year, and the market has been functioning well, but we would expect there to be a lot of demand unleashed once buyers can get out and about again and have confidence the pandemic is nearing its endgame,” said Julian Coppini, CEO of Oliver Hume.
Coppini also pointed to the already positive state of the market, with record low interest rates, low unemployment and elevated buyer confidence.
“There is plenty of reasons to be optimistic that the market can absorb all the new product coming to market through us and others in the lead up to Christmas,” said Coppini.
On top of the current positive market conditions, the buyer experience is also set to improve with eased restrictions, with buyers increasingly being able to attend in person inspections, for example.
“The return of international travel and the resumption of migration throughout 2022 is also expected to provide an uptick in activity over the medium term,” added Coppini.
The effect of APRA’s new stricter lending restrictions, which will increase the minimum interest rate buffer up to 3% in a bid to mitigate rising house prices, on the market will also play out over the third quarter. (LINK)
“We are entering a new phase in the land market as we transition to greater freedoms with the easing of border and other restrictions and fewer restrictions overall. Oliver Hume will continue to watch the land market closely and measure impacts from key factors including APRA’s changes,” concluded Coppini.
