Residential land sales have hit a fresh low, 40 per cent weaker than their long term average. The volumes have been below the previous trough set during the global financial crisis for five consecutive quarters now, that’s according to the Housing Industry Association’s chief economist Harley Dale. He says the situation points to there being no foreseeable recovery for new home building. The volume of residential land sales fell by 27 per cent in the December 2011 quarter when compared to the December 2010 quarter.
Meanwhile, HIA-RP Data found median land values for capital cities increased by 2.8 per cent in the December quarter to $219,000 compared to the December 2010 quarter. But the median value for regional Australia fell 0.7 per cent in the quarter to $154,000 compared to one year earlier.RP Data’s research director Tim Lawless says conditions in the vacant land market are the weakest in more than a decade.
Final ABS figures confirm a weak quarter for new housing and renovations. In the December quarter new residential building work done dropped 1.7 per cent, and alterations and additions fell 2.1 per cent.
And despite a slump in the property market, revenue from property related taxes rose 4.6 per cent last financial year to $33 billion. That’s according to RP Data. Municipal rates increased by almost 7 per cent, land taxes 4 per cent and there was a minor increase in stamp duty. Increases in land tax charges and council rates have been the main driver of growth in property related tax revenue over the last financial year. RP Data’s Cameron Kusher says stamp duty revenue has felt the effects of soft housing market conditions.
