June quarter records rise in land sales
Land sales have increased during the June quarter, and are expected to continue rising into the new year. This information comes from the latest RP Data - Housing Industry Association (HIA) Residential Land report, and could be a great sign of encouragement for anyone thinking of selling or buying land in the new year.
During the June quarter, the volume of residential land sales across the nation increased by a whopping 18.2 per cent, with the total number of sales reaching 17,170.
According to Harley Dale, chief economist for the HIA, this is an impressive level of recovery, with this result being the "highest quarterly volume achieved since the March quarter of 2010".
"Land sales volumes highlight the prospect of further growth in detached house starts in 2013/14 following a modest lift of 3.7 per cent in 2012/13. That would be a very positive outcome for both the new home sector and the wider economy," said Dr Dale in an October 21 statement.
Dr Dale went on to state that there was a clear and direct correlation between the number of residential housing land sales and the number of detached housing starts across the nation.
This is great news for Australia, which is expected to experience population growth in a number of locations across the country - including New South Wales, Western Australia and Victoria - and could offer a great opportunity to purchase off the plan investment property.
Sales for the year so far have reached 56,782, which is still below the historical average for the nation. However, these upward trends in land sales and detached homes are encouraging enough when highlighting the returning strength of the market.
Tim Lawless, research director for RP Data, said the growth has been increasing since mid-2012, with both capital gains and transaction volumes increasing during this period.
"It should come as no surprise that the Sydney housing market, which remains well undersupplied relative to the rate of population growth and is recording the highest rate of capital gain currently, is one of the primary drivers behind the lift in national vacant land sales," said Mr Lawless in an October 21 statement.
"According to the data, the number of land sales across Sydney was 33 per cent higher over the year to the June quarter to reach an eleven year high."
Mr Lawless also highlighted substantial increases in the number of block sales across Melbourne, Brisbane and Adelaide over the June quarter.