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FOR IMMEDIATE RELEASE

19 April 2012

Land sales signal weak year for new home buildingThe latest residential land update signals persistent weakness in new home building in 2012 .

The HIA-RP Data Residential Land Report provided by the Housing Industry Association, the voice ofAustralias residential building industry, and RP Data, Australias leading property information andanalytics provider, showed land sales hitting a fresh low and median land values rising further in theDecember 2011 quarter.

The volume of residential land sales has been below the previous trough set during the GFC for five

consecutive quarters now, said HIA Chief Economist, Harley Dale. Over the five quarters to Decemberlast year land sales ran at a volume 40 per cent lower than their long term average.

This situation points to there being no discernable recovery on the horizon for new home building,further highlighting that current policy settings in Australia are inappropriate, Harley Dale said.

Interest rates are too high, plans for contractionary fiscal policy untimely and too tight, state housingreform too slow, and cooperative reform efforts across levels of government too difficult to find, addedHarley Dale.

The volume of residential land sales fell by 27 per cent over the year to the December 2011 quarter. Theweighted median residential land value in Australia increased by 1.7 per cent in the December 2011quarter to be 0.7 per cent higher when compared to the December 2010 quarter. The median value for

capital cities increased by 2.8 per cent in the December 2011 quarter to $219,001, 1.5 per cent higherthan one year earlier. The median value for Regional Australia fell by 0.7 per cent in the December 2011quarter to $153,833, to be down by 1.0 per cent on the December 2010 quarter.

RP Datas research director Tim Lawless believes conditions in the vacant land market are the weakestin more than a decade.

Vacant land markets are substantially weaker now than what they were back in the height of the GFCand the duration of the downturn has been sustained for five quarters.

Over the 2011 calendaryear we have seen just under 44,000 land sales which is 46% lower than whatwas recorded over the 2009 calendar year. Compare that to the dwelling market where transactionvolumes are about 28% lower compared with the 2009 highs, which is a weak result in itself, and the

significant weakness in the vacant land market becomes even more apparent.

For further information please contact:Harley Dale, HIA Chief Economist 0414 994 186Mitch Koper, National Media and Communications Manager, rpdata.com 0417 771 778

For copies of the publication (media only) please contact: Kirsten Lewis onk.lewis@hia.com.au

mailto:k.lewis@hia.com.aumailto:k.lewis@hia.com.aumailto:k.lewis@hia.com.aumailto:k.lewis@hia.com.au

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5,000

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145,000

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$

No. of sales (RHS) Value (LHS)

RESIDENTIAL LAND SALES & MEDIAN LOT VALUE - AUSTRALIA

Source

:rpdata.com,

HIAEconomics

Rank Region Median Lot Price ($) Rank Region Median Lot Price ($)

1 Richmond-Tweed (NSW) 269,000 1 South East (SA) 74,000

2 Sunshine Coast (QLD) 235,000 2 Mersey-Lyell (TAS) 77,500

3 Gold Coast (QLD) 230,290 3 Mallee (VIC) 80,750

4 Illawarra (NSW) 210,000 4 Northern (NSW) 85,000

5 Barwon (VIC) 194,000 5 Northern (SA) 89,500

6 Mackay (QLD) 176,000 6 Murrumbidgee (NSW) 90,000

7 Hunter (NSW) 173,000 7 Murray Lands (SA) 97,000

8 South West (WA) 163,450 8 Murray (NSW) 101,500

9 Fitzroy (QLD) 160,000 9 Loddon (VIC) 105,000

10 Northern (QLD) 157,900 10 Ovens-Murrray (VIC) 107,500

10 MOST EXPENSIVE REGIONAL MARKETS 10 LEAST EXPENSIVE REGIONAL MARKETS

Source: rpdata.com, HIA Economics Group Source: rpdata.com, HIA Economics Group