Residential land prices increase
THE price of land is increasing nationally, according to the latest residential land report from the Housing Industry Association and property analytics provider, RP Data.
The HIA-rpdata.com Residential Land Report shows the weighted median price of raw land in Australia increased by 1.1% in the June 2009 quarter to $174,490.
Sydney remained the most expensive market with a median price of $255,000, while the most affordable market was Mallee in Victoria with a median price of $70,000.
HIA Chief Economist Dr Harley Dale said median land prices rose for the second consecutive quarter, after declining throughout 2008.
“The challenge now is to ensure that land price appreciation does not get out of control the way it so clearly did in the last up-cycle, eroding housing affordability to a disproportionate extent along the way,” he said.
In an encouraging sign, however, the volume of land sales for Australia is now trending higher, supporting HIA's forecast for a moderate recovery in new home building in 2010.
Of the 40 non-metropolitan areas around Australia reported on for the first time in this report, 25 saw an increase in land value.