Northern Rivers land prices soar
THE median price of residential land blocks across the Richmond and Tweed districts soared 9.3 per cent over the last year, further putting the dream of home ownership out of the reach of many.
Data supplied by the Housing Industry Association and rpdata.com reveals that in the 12 months to March, the cost of land in the Richmond-Tweed region rose to $235,000 – giving it the dubious title of being the country’s third most expensive regional market.
“There are multiple factors for that ranking, and lack of land supply in the region would be one of them,” HIA chief economist Harley Dale told The Northern Star yesterday.
However, the good news, he said, was that the price spiral appeared to be slowing, with a land price jump of only $1000 recorded over the past three months.
Mr Dale’s comments came as the HIA and rpdata.com released additional research data showing that nationwide land sales fell for the second consecutive quarter in March.
It found the volume of land sales fell 40pc in the March quarter, compared with the same quarter the previous year.
“The renewed decline in the volume of land sales over the six months to March is consistent with mounting concern over the sustainability of the recovery in new residential construction nationally,” Mr Dale said.
“The prospect of new home starts heading down again next year reinforces the need to keep interest rates on hold throughout the remainder of 2010.
“It also reinforces the compelling case for urgent action in ensuring adequate, affordable land supply, including addressing the restriction of finance for residential development which is severely handicapping new home building activity.”