Land sales paint grim picture for home building

by Adam Smith20 Apr 2012

Land sales data has foreshadowed a weak year ahead for new home construction.

The HIA - RP Data Residential Land Report has found land sales hitting a new low, while median land values rose.

"The volume of residential land sales has been below the previous trough set during the GFC for five consecutive quarters now. Over the five quarters to December last year land sales ran at a volume 40 per cent lower than their long term average," HIA chief economist Harley Dale said.

The volume of residential land sales fell 27% over the year to the December quarter, while median land values increased 1.7%. Dale said the results painted a grim outlook for new home construction.

"This situation points to there being no discernible recovery on the horizon for new home building," he said.

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