Figures from the HIA-rpdata.com Residential Land Report show the number of land sales in Australia has fallen sharply, reaching levels not seen in a decade.
Sales of land for the 12 months to December 2010 has fallen 40.4 percent and is believed to be due to severe un-affordability reducing demand, although Tim Lawless, Research Director at RPdata said “with land prices continuing to rise the fall away in land transactions is clearly supply related.”
Regardless of if the issue is supply or demand side driven, one thing is certain. HIA Economist, Matthew King says “The sharp drop in the volume of land sales signals a very weak 2011 for new home building.”
Note : The Federal Government announced the boost to the First Home Owners Grant in October 2008. First Home Owners who choose to build received a further $14,000 on top of the existing $7,000 and before any state based grants. The grant expired on the 31st December 2009, and required owners to enter into contracts on or before the 30 September 2009 to obtain the maximum benefit. Do you see any correlation in the above graph?
» Land sales fall to 10-year low – The ABC, 18th April 2011.
» Land sales fall to lowest in decade on high costs – News Limited, 18th April 2011.
» New home slump looms as land prices soar, pushing sales to their lowest level in a decade – The Australian, 18th April 2011.