Property
Issue No. 36 - August/September 2007
Property News
SA's land supply unaffordable
The recently released Land Monitor Report concludes that SA's stock of affordable developed residential land has diminished, driving up house prices and eroding housing affordability. The cost of land in Adelaide rose significantly in the December 2006 quarter, up 6.7%, whilst vacant land lot prices also rose in Regional SA, but at a more moderate level, up 2.1% annually. “There is a shortage of available land in the central and southern sectors of Adelaide. The escalation in land prices has been one of the key contributing factors in the severe decline in housing affordability in SA. This report provides clear evidence that until the supply of affordable land improves, prices in both new and established property markets are likely to continue their upward trajectory,” says HIA ED Robert Harding.
New home sales sees modest improvement
New home sales in SA has slightly improved however the level remains considerably lower than 2006. HIA's New Home Sales figures recently released show a rise in April of 8.1% for the sale of new homes among SA's largest builders and developers, following a 14.8% drop in March. “A relatively strong state economy is reflected in a recovery in the established housing market. We have, however, seen housing affordability remain very low in early 2007 and a lack of action to address this onoing problem is preventing the residential construction market from displaying the ...
