The cost of land is increasing nationally, according to the latest residential land report from Housing Industry Association (HIA) and property information analysts RP Data.
The HIA-RP Data Residential Land Report shows the weighted median price of raw land in Australia increased by 7.4 per cent in the March 2009 quarter to $172,490, following four consecutive quarterly declines.
“Very low variable mortgage rates, the First Home Owner’s Grant boost, and attractive deals from volume builders have generated increased new home demand,” said HIA chief economist, Harley Dale.
"The improvements in the vacant land market are over and above the growth recorded across the broader housing market, where dwelling values increased by 2.1 per cent over the March quarter," DR Data national research director, Tim Lawless said.
The report found that the most affordable area was regional Tasmania with a median price of $79,750, while the most expensive market was Sydney with a median price of $259,000.
Aaron Gadiel, CEO of Urban Taskforce, said that the increase in land prices could be seen as a sign that the market is picking up.
"What is clear is that the development equation is becoming more viable. We have seen some land release now and in Sydney levies are well down on what they were a year and a half ago," he said.
