Australia’s land prices rise
The dream of building a home has become dearer for Australians as land prices have risen to a new high, a survey says.
The Housing Industry Association (HIA)-RP Data residential land report found the weighted median price of a vacant housing block rose by 5.7 per cent in the September quarter to $181,158, from the previous quarter.
HIA chief economist Harley Dale said new home starts would rise in 2010 but the improvement in the industry may not continue next year.
The survey found the number of residential land sales rose 33 per cent in the September quarter of 2009 compared to the corresponding period in 2008.
"The million dollar question is whether a new home building recovery can be sustained beyond this year," Dr Dale said.
"If land is not released in a timely manner in sufficient quantity, then land prices will continue surging and the answer will be a resounding no."
Sydney remains the dearest market, with a median price of $290,000, the report found.
NSW Richmond Tweed area was the most expensive regional market, with a median price of $255,000, while the Murray Lands region in South Australia was the cheapest, with a median price of $69,500.
RP Data national research director Tim Lawless said rising interest rates would hinder first home buyers from entering the property market, while demand from investors should continue to increase in 2010.
"Increasing interest rates along with the removal of the first home buyers grant boost are expected to result in demand from the first home buyer sector diminishing significantly during 2010, after reaching historical highs during 2009," Mr Lawless said.
The value of investor housing loans has risen by 9.6 per cent since its recent trough in July 2009, Mr Lawless said.
Australians' love for property continues to regain momentum after the national house price index rose 4.4 per cent in the September quarter, official data showed earlier in the week.
Subsequently, the house price index rose 5.2 per cent in the December quarter.
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