Property lot production too low

Production of property lots in Sydney is predicted to increase by 25 per cent through 2008-09 but, in the nation's largest city, this is from a base that is around the same level as in Adelaide over recent years. Only 2,800 new lots were released in Sydney in 2005-06 which was less than half the rate of releases in the late 1990's. Lot production almost tripled in Perth from 4,700 in 1996-97 to 13,900 in 2005-05, but this is expected to drop by 38 per cent in the three years to 2008-09. Forecaster BIS Shrapnel said that while housing affordability is not improving, population growth is creating strong pent-up demand in most markets.