Global Power | Local Knowledge | Uniquely Personal
中文

Land prices holding back new bu...

Land prices holding back new builds

The high cost of land is slowing residential building, says HIA.

Although demand for new Australian property is high, the cost of land is holding back building work.

The Housing Industry Association (HIA) and RPData's Residential Land Report shows prices are high across Australia's capital cities, with Sydney and Perth proving the most expensive.

As a result, the only state that has seen improvements in residential land sales is Western Australia.

HIA chief economist Harley Dale said: "Ensuring readily available and affordable land forms a crucial part of the wider policy challenge of addressing the excessive and inefficient tax and regulatory environment faced by the new home sector."

Indeed, growth in the residential construction market has been slow. Figures from the Australian Bureau of Statistics (ABS) have shown only moderate increases in building approvals throughout the year.

Even so, the demand for property is rising as strong clearance rates from weekend auction results have shown. This has caused increases in property prices and spurred fears of a housing bubble.

Posted by Craig Francis

 

 

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

Subscribe Now