Tag: HIA

Residential Land Prices Rise Again

The latest HIA-RP Data Residential Land Report provided by the Housing Industry Association, and CoreLogic RP Data, show that acute supply bottlenecks continue to affect Australia’s residential land market. Land prices reached an all-time high in both the capital city and regional markets.

Turnover in the national land market declined by some 16.7 per cent during the September 2014 quarter. At the same time, price growth accelerated to 3.3 per cent over the quarter.

During the September 2014 quarter the weighted median price of residential land rose by 3.3 per cent to $212,727 per lot. This represents an all-time high for land prices nationally. Capital city land prices saw growth of 4.7 per cent during the quarter, and were 10.0 per cent higher than twelve months earlier, however some of this was due to an increase in the size of land lots transacted. In regional Australia, land prices rose by 0.7 per cent during the quarter and were 3.5 per cent higher compared with a year earlier.

The supply and price issues flow directly into helping to drive house prices higher.

New Home Sales Fell 1.9% In December – HIA

The HIA survey of Australia’s largest volume builders showed that for the month of December 2014, total seasonally adjusted new home sales fell by 1.9 per cent, reflected a drop of 9.2 per cent in ‘multi-unit’ sales and a flat result for detached house sales. Sales increased by 4.9 per cent in the December quarter and the number of sales in 2014 was 14.4 per cent higher than in 2013.

In the final month of 2014 detached house sales increased by 2.8 per cent in Western Australia and by 2.6 per cent in Queensland. Detached house sales declined by 5.3 per cent in South Australia, 2.6 per cent in Victoria and 1.4 per cent in New South Wales. During the December 2014 quarter, sales increased by 13.4 per cent in Western Australia, 11.6 per cent in Queensland and 2.7 per cent in Victoria. Meanwhile, sales declined by 10.3 per cent in New South Wales and by 7.5 per cent in South Australia.

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New Home Sales Continue Upward March – HIA

The latest result for the HIA New Home Sales Report, a survey of Australia’s largest volume builders, highlights a second consecutive rise for sales in the month of November 2014. Renewed upward momentum in the multi-unit segment drove growth in overall new home sales in late 2014. In fact sales of multi-units surged in both October and November to reach their highest level since September 2003.

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Whilst detached house sales increased by 4.0 per cent in Victoria, 16.0 per cent in Queensland, and 0.3 per cent in South Australia, detached house sales fell in November in New South Wales (-5.6 per cent) and Western Australia (-10.6 per cent, following a +24.8 per cent result in October).

HIA says the key leading indicator measures of building approvals and new home sales suggest this re-concentration of growth in the ‘multi-unit’ segment will persist into 2015. They call for a focus on housing policy reform to a further burst of growth in detached house construction which would at the same time provide productivity gains for the broader Australian economy.