Please note - Due to the holiday season, builders and developers may be slower than usual in responding to any queries Close

Predictions and trends for the 2019 year across the new home sector

In what was a dynamic year for the Australian property market, we saw fluctuations in affordability, prices and investment trends throughout 2018. At the start of this new year, iBuildNew discusses predictions for the property market for 2019, and what we can expect to see in the new home sector.

More land will be coming to market
Over recent years the new land market has been hot, especially in the Sydney and Melbourne markets. With the market softening, new land releases won’t sell out the same week they are released, and the availability of land to pick from will slowly grow during the course of the year. Coupled with some very large projects arriving on the market in 2019, buyers will have much greater options.

Deposit amounts will reduce
Once upon a time, deposits on land were 5%. But with a surge in demand driven mainly by population growth in Sydney and Melbourne, major developers moved to 10% initial deposits and the market followed. With demand softening and the market becoming more competitive, developers are starting to accept 5% deposits again. This will likely become the norm once again in 2019.

copy-of-couple-viewing-plans

More promotions to buyers on new land
Similar to the above, promotions and incentives in locations where you find multiple new land developments were once prevalent across the market. But with land sales so strong in recent years these bonuses dried up. This has positive implications for the new home sector: look out for some great buying opportunities and added value from developers in 2019.

Affordability will remain a major challenge
Housing affordability is probably the single biggest challenge facing home buyers and the property industry. Land appreciation and a shortage of labour to deliver development projects, and indeed home builds, has pushed costs and pricing to all-time highs across every capital city of Australia. Coupled with virtually stagnant wage growth over the last decade, the affordability crunch was inevitable. Now with financial regulations and lending practices tightening, home buyers can’t just keep borrowing more to cover the price growth, so the affordability challenge, especially for first home buyers is going nowhere. The good news is, home building in new land estates remains a more affordable way to get enter the property market, perhaps with a few exceptions.

Land lots will continue to get smaller, and smaller
Affordability will be somewhat relieved by smaller and smaller land lot sizes becoming available. It’s one of the few options available to drive down prices. The average land lot size across Melbourne and Sydney has reduced from around 600 square metres to just under 400 square metres in the last 3-4 years. Thus, this is not a new trend, but with many land lots now in the 300-350 square metre range, it will continue to decline, and it’s well known that some developers are planning developments with 220 square metre lots!

A broader range of designs to suit small blocks of land
With land lots getting smaller, and specifically more narrow, we will see builders offering a greater range of home designs to suit narrow lots. Most builders already have designs that work on 10m wide blocks, but we will now see many offering great and innovative designs to work with 8m wide lots, and even 6m wide land!

building-new

More townhouse projects than ever
Again affordability is driving developers to go down the path of terrace townhouses. In many of the new land developments, it has become a condition of the planning approval that a certain number of townhouses are available in a drive to offer more affordable homes to buyers, especially first home buyers. We also predict that we will see more infill projects in some suburbs closer to the CBD, which has been a growing trend in the last few years for both builders and developers. Some of the townhouse projects now available and not only affordable, often in the $400,000 range, but they are incredibly stylish!

Greater and bigger promotions from home builders
Within the new home sector, the marketplace is increasingly competitive, and with that comes bigger and better promotions from home builders. This is great for home buyers as items that may be on your wish list that would typically be upgrades can now be found within a promotion, ie. 900mm appliances rather than standard 600mm appliances, just as one example that can be worth several thousand dollars. If you are down to two or three options when comparing different builders, take a close look at the promotions that are likely to be on offer as coming into 2019 they will be bigger and better than ever.

Kent

Builders will fix prices for longer
In recent years, with land titling in some cases 12-24 months into the future and with some uncertainty around build costs, builders have been reluctant to fix prices any more than 12 months in advance (in some cases much less). However, with increased competition in the new home sector, greater certainty on land titling, and less volatility around labour availability and rates, builders are more willing to fix contracted prices for more extended periods. You will find builders offering a fixed contract price for up to 18 months, and in some cases at absolutely no or minimal costs to the buyer.

The outlook for 2019 is favourable for the new home sector. While lots and homes may decrease in size, home designs are set to change with an emphasis on utilising space. With more land available with a lower deposit, the scope for affordability is set to widen.

iBuildNew is here to help you compare and identify new home designs, house and land package or investment properties from across the entire market. Our experts are on hand to answer your questions and help you start your home building journey. Book a call with them today, or call us direct on 1800 184 284!

iBuildnew Advisory Team
Let us do the legwork for you.
  • We’ll ask the right questions to better understand your needs
  • We’ll create a recommended shortlist ideally matched to you
  • We’ll answer specific questions or concerns related to home building, land purchasing or financing

Emily Felton

Following a degree in Marketing, Emily cut her teeth in the world of journalism, writing features for various national publications. Her particular areas of interest are sustainable housing, renovation and good old interior design.

About

iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

You may also like

Sep 02, 2021

What Is The Difference Between A Turnkey Package �...

In the process of looking to buy your own place, there may be a number of choices and t...
Read More
Dec 13, 2018

Predictions and trends for the 2019 year across the ...

In what was a dynamic year for the Australian property market, we saw fluctuations in a...
Read More
Jan 24, 2018

Building a House in an Estate or an Established Area

With so many housing options available in Australia, it can be hard deciding which area...
Read More
May 16, 2017

5 Essential Factors To Consider When Buying A House ...

Planning to purchase a house and land package? Finding one that is worth your hard-earn...
Read More
Mar 21, 2018

Should You Find Land For Sale Or a Builder First?

When it comes to finding land for sale, whether in rural or metro areas, figuring out w...
Read More
Mar 30, 2021

Townhouse Living: Is It Right For You?

When going through the journey of finding a home, it’s no surprise you’ll want to figur...
Read More
May 14, 2018

4 Myths To Know When Investing On Your H&L Pack...

House and land package have become popular option for homebuyers and investors in Austr...
Read More
Sep 27, 2017

Should You Rent or Build a New Home?

To rent vs buy? That really is the big question that is currently plaguing many young p...
Read More
May 10, 2019

Emphasizing The Importance of Land Surveying

While land surveying may not be one of the most glamorous parts of buying property, it ...
Read More
Sep 02, 2020

Our Tips For Choosing A House And Land Package

For many first-time homeowners, choosing a house and land package is an easier alternat...
Read More
Aug 29, 2017

Understanding How House & Land Packages Work

If you are interested in purchasing a House & Land Package to invest in, then under...
Read More
Jul 26, 2018

Should You Build a New Home from Scratch or Purchase...

When you start looking to build a new home, there is one vital decision every buyer mus...
Read More
Apr 04, 2019

How to find the best location to build your new home

We have all heard the cliche saying before… it’s all about location, location, location...
Read More
Mar 04, 2021

Top Questions To Ask When Buying A House And Land Pa...

This article was originally published on iBuyNew.com.au and has been reposted here with...
Read More
Jul 16, 2018

How Long Does it Take to Build a New House and Land ...

The home building process can vary slightly from build to build. House construction sta...
Read More
May 22, 2017

Have You Heard About Cranbourne House & Land Op...

Melbourne’s outer east still represents one of the best places for people to find their...
Read More
Feb 27, 2022

Everything You Need to Know About House and Land Pac...

There are many alternative ways of buying or investing in a home. One of the options th...
Read More
Dec 19, 2017

Building vs Buying a House | Things to Consider

When you have decided to find your own home, one of the first decisions that you will b...
Read More
Mar 27, 2022

House and Land Package Pros and Cons

We’ve covered a lot about choosing a suitable house plan and an appropriate block of la...
Read More
May 16, 2017

Urban Planning and Development in Australia: What Yo...

Understanding town planning in Australia is crucial for anyone planning to build a new ...
Read More

House and Land Package, A Dynamic Duo and a Great In...

When considering an investment property, there are a number of key features to take not...
Read More
Jun 21, 2017

Expectation vs. Reality: House and Land Prices

Here at iBuildNew we like to support our customers with their new home journey, well be...
Read More
Dec 01, 2017

Benefits of Buying a House and Land Package from iBu...

As an investor, the decision to secure your financial future with an investment propert...
Read More

Get more from

Browse House and Land Packages