Land sales and prices are still rising across Australia
On the up for the second consecutive quarter.
The release today of the HIA-CoreLogic Residential Land Report shows land sales have increased in the three months leading up to September 2016, which was the second quarter of increases. Figures show that not only did sales increase, but prices also continued to rise in some areas of the country.
“During the September 2016 quarter, the volume of land sales increased by 1,121 lots compared with the June 2016 quarter,” HIA senior economist Shane Garrett said.
“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.”
The report showed that land lot prices rose by 3.3% nationally during the September 2016 quarter with 18,510 land lot transactions occurring over the period.
“With median land prices rising consistently since mid-2013 it is clear that one of the primary drivers of broader housing market growth has been the underlying appreciation of land values, which is pushing the overall value of housing higher. The median dollar value per square metre of vacant land was recorded at $927 in Sydney, which is 32% higher than the next most expensive capital city,” CoreLogic research director Tim Lawless said.
Looking at the capital cities there were only two that saw an increase in land sales in the 6 months up to September 2016,:Perth (+5.5%) and Hobart (+2.1%). All other capitals saw decreases when compared to the same period in the year before with Sydney (-29,9%) and Melbourne (-13.5%) seeing the largest reductions in sales.
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