Increase in land prices in Australia

According to the recently released Housing Industry Association (HIA) and rpdata.com, Residential Land Report, the weighted median price of land in Australia rose by 14% in 2009. The report states that this rate of increase in land prices hasn't been seen since mid-2004.

In the meantime, land sales had decreased by 4.6 per cent for the previous 12 months.

These figures are causing some concern. Due to our growing population and housing construction levels it would be a much better situation to see land releases and sales volumes rising. Without an increase in construction of residential dwellings we are likely to see affordability worsen and continuing pressure in a very tight rental market.