Land prices hit record high but Brisbane is bucking the trend

first_imgResidential land prices have hit a record high, according to the HIA-CoreLogic report.HIA senior economist Shane Garrett said increases in the price of residential land continued to be the single biggest factor behind recent deteriorations in housing affordability.Mr Garrett said there was only a small increase in the supply of residential land during the March quarter, yet prices continue to rise.“Land price increases in Australia are unrelenting,” he said. “The solution to the housing affordability challenge lies in ensuring that the additional residential land needed across our cities and regional towns is delivered in the right place, at the right time and at the lowest price. This should be a key imperative for governments at all levels.” More from newsMould, age, not enough to stop 17 bidders fighting for this home1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor1 hour agoThe price of an average block of land on the Sunshine Coast is $278,750, according to the HIA-CoreLogic report.The report found the median lot price on the Sunshine Coast is $278,750, based on sales during the March quarter.In comparison, the median price for a block of land on the Gold Coast is lagging behind at $243,400.“I think Queensland is the only jurisdiction where there is a region with a land price higher than the capital city,” Mr Reardon said.The report also confirmed Brisbane’s backyards are shrinking, with the average block of land in the city now 475.5 sqm compared to 605 sqm a decade ago. Tennis court for sale (the home’s not bad either) Hot new home colour trends Spring selling season is here But Mr Reardon said it still had one of the largest lot sizes among the capital cities, which was an indication there was still land available for more housing.Across regional Queensland, more than 3,500 residential land lots changed hands in the March quarter — down 1.3 per cent on the previous quarter and 5.1 per cent lower than the same period a year earlier. The biggest increase in land sales was in the West Moreton region (+61.5 per cent), followed by Darling Downs (+51.4 per cent). On the other hand, there were nearly 27 per cent fewer land transactions on the Sunshine Coast during the first quarter of this year, followed closely by the Gold Coast (-25.3 per cent). Houses under construction in Eagle Farm, Brisbane. Photo: Jodie Richter.“There’s been a slowing down in the number of lots available, which is an indication demand for lots has also declined, which is consistent with our expectations that activity will slow over the next couple of years.”But the Sunshine Coast is giving its southern cousins a run for its money, with the report finding it’s residential land is the most expensive in the state and the dearest regional market in the country. Land prices have hit a record high, according to the HIA-CoreLogic Residential Land Report. Picture: Alison Wynd.RESIDENTIAL land prices have hit a record high, with the soaring cost of an average house block proving to be a huge hurdle for homebuyers — but Brisbane is bucking the trend.The latest HIA-CoreLogic Residential Land Report reveals the price for a typical vacant lot of land for housing in Australia rose by more than 9 per cent in the year to March to $253,525, prompting calls for more land to be released to address the housing affordability crisis.It’s better news in Brisbane where the median lot price in the residential land market has come off record highs to sit at $245,000 — 3.6 per cent lower than it was in the first quarter of 2016.Housing Industry Association principal economist Tim Reardon said residential land in Brisbane was becoming slightly more affordable, unlike the other capital cities which were becoming increasingly unaffordable.center_img HIA senior economist Shane Garrett.CoreLogic commercial research analyst Eliza Owen said the report suggested demand remained strong for residential land as a result of strong dwelling price growth. She said high growth in housing assets might make houses on relatively cheap land the preferred dwelling type for developers. HIA principal economist Tim Reardon. Picture supplied by HIA.“It’s encouraging to see Brisbane land prices have flattened out after some steep increases,” Mr Reardon said. He said the large number of apartments built in recent years could be absorbing some of the demand for blocks of land for housing.last_img

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