Land sales point to strong growth in home construction

Recent figures from RP Data and the Housing Industry Association (HIA) have recorded strong growth in the number of plots of land being sold in Australia, with Queensland one of the fastest-growing states.

The study found Queensland has recorded a 15.7 per cent increase in land sales, compared to the same time in 2013. Only Tasmania saw greater growth (26.4 per cent), while NSW and Victoria also recorded increases.

Across the whole country, land sales increased by 10 per cent over the whole year, while the June quarter alone recorded an 8.4 per cent increase across the six states.

RP Data Research Director Tim Lawless stated that increases in housing sales will translate into greater construction.

“A rise in land sales implies a rise in detached housing construction about six months down the track which in turn provides a substantial multiplier for the Australian economy; more jobs, more building materials, home furnishings, appliances and white good sales,” said Mr Lawless.

“This is the strongest result since the June quarter of 2013 which is welcome news.”

With building approvals also increasing earlier in recent figures, there are some strong signs for the Queensland property market.

Along with increasing numbers of land sales, the average price of these plots has also increased. RP Data now report the median land value across Australia has risen to $25,000, the highest level on record and a constant increase since June 2013.

In other good news for home sellers, Queensland recorded a strong showing in the most expensive suburbs. Of the country’s 10 most costly areas for property, three are in Queensland, while none of the 10 least expensive markets are in the state, according to RP Data.

As land sales increase, and lead to a greater number of residential construction, individuals will need to make sure they consult with a conveyancing lawyer. They can advise on the specific requirements that come with the transfer of property, and help to navigate any issues that might arise in this process.