Land Sales Recover, As Prices RiseFebruary 15 2017
The number of residential land sales has increased for the second consecutive quarter as prices reached a new high during the three months to September 2016.
According to the latest HIA-CoreLogic Residental Land Report published by the Housing Industry Association (HIA), and CoreLogic.
“During the September 2016 quarter, the volume of land sales increased by 1,121 lots compared with the June 2016 quarter,” said HIA Senior Economist, Shane Garrett.
“However, the number and size of government taxes, fees, levies and charges on new residential land needed to accommodate our growing population continues to weigh down on our national housing affordability challenges,” explained Shane Garrett.
“In addition to removing the excessive taxes on new land, long term commitment from all levels government in the areas of planning, land release and infrastructure funding is necessary.”
CoreLogic research director Tim Lawless states that Perth is the second most expensive capital city, after Sydney, for land costs, with a rate per square metre of $701.
“The trend towards a larger number of land sales over the September and June quarters of last year is very welcome, however land sales remain more than 7 per cent lower than their previous 2015 peak. With capital city transactions rising by almost 10 per cent over the September quarter compared with a 1.1 per cent rise across the combined regional markets, it is clear that demand for vacant land is most concentrated across the capital city markets where economic conditions are generally stronger,” concluded Tim Lawless.
Today’s HIA-CoreLogic Residential Land Report shows that the land lot price nationally rose by 3.3 per cent during the September 2016 quarter to another record high of $243,585. During the quarter, 18,510 land lot transactions are estimated to have occurred across Australia, 6.4 per cent higher than the previous quarter but 7.3 per cent lower than a year earlier.
During the six months to September 2016, land transactions experienced the largest increase in Perth by 5.5 per cent compared with the same period a year earlier.