Australians are snapping up house-and-land packages, with new figures revealing building approvals increased 3.5% in August. The latest ABS figures show the number of buildings approved during August hit 12,009, well above the 8,458 recorded at the same time in 2019.
Oliver Hume data reveals in September there was a 30% increase in Melbourne of people paying a reservation fee to secure a block of land.
The increase in demand for house-and-land packages comes as the cost of construction increased since February by 10% for a single-level home and 5% for a double story home. While the timber shortage has started to ease, glass is in short supply and many buyers are still waiting for tradesmen to be available.
Oliver Hume national head of research George Bougias says the challenges have not put off buyers of house-and-land packages. He says some buyers are rushing to get loans to build ahead of the APRA move to tighten lending criteria.