Residential land sales up modest 4.3% in March quarter: HIA-RP Data

The latest HIA-RP Data residential land report is signalling only modest improvements in new home building activity. 

“From a very low base in 2011, residential land sales have displayed only modest upward momentum, a trend reinforced by the 4.3% increase observable for the March 2013 quarter,” says HIA chief economist, Harley Dale. 

“The March quarter update signals we are moving in the right direction, but, as a key leading indicator, land sales suggest the magnitude of a first stage new home building recovery will fall short of what the economy requires. 

“Any clear improving trends are limited to NSW and Western Australia.” 

“WA is the only state to have achieved clear and consistent improvements in residental land sales over the past 18 months. 

Despite only a modest pick-up in sales, Dale says land prices continue to find record highs. 

"Sydney and Perth are the country’s two most expensive land markets - and by quite a margin.” 

"It’s no coincidence that they are the two most highly taxed residential new home building markets in the country, due in large part to excessive taxes and charges related to land."

Dale says these costs aren’t exclusive to Sydney and Perth. He says other capital cities are seeing upwards price pressures on serviceable residential land.