The cost of residential land continues to rise with a new report showing the median price of raw land increased by 2.2 per cent to a record $185,222 in the December 2009 quarter.
The latest residential land report from building industry organisation HIA and property information and analytics provider rpdata.com, highlights the risk of the new home building recovery losing momentum from the second half of 2010.
The HIA-rpdata.com Residential Land Report shows the weighted median land price for Australia growing at an annual rate of 14 per cent at the end of 2009, the fastest pace since mid 2004.
Meanwhile the volume of land sales fell substantially in original terms in the December 2009 quarter. Land sales were down by 4.6 per cent in the December 2009 quarter compared to the December 2008 quarter. In the September 2009 quarter sales were 26 per cent higher when compared to the same quarter in 2008.
HIA Chief Economist, Harley Dale, said that over the year to December 2009, new house prices (excluding land) grew by 2.8 per cent, building materials prices increased by 1 per cent, labour rates fell marginally, yet median land prices jumped by 14 per cent.
Sydney remains the most expensive residential land market in the nation with a median price of $275,000.
Outside the capital cities, the Sunshine Coast in Queensland is the most expensive land market (median price of $249,000), followed by the Gold Coast ($241,000) and the Richmond Tweed ($235,000) and Illawarra ($197,500) regions in New South Wales.
There are still thirteen markets across Australia where median land prices sit below the $100,000 mark.
The most affordable market is the Northern region of South Australia ($59,165), followed by Mallee in Victoria ($75,000), the Southern region in Tasmania ($76,000), Murray Lands in South Australia ($80,000) and Mersey Lyell in Tasmania ($85,000).