City land prices rising sharply
The Housing Industry Association (HIA) released its latest land sales data for the quarter ended September 2015, which showed a very strong uplift in residential lot values.
Median lot values were up by +4.2 per cent to above $220,000 despite lower volumes over a period of more than two years since the June 2014 quarter.
"There has been a tightening of market conditions, concentrated in the capital cities" noted the HIA.
The increase was thus driven by capital city land prices which increased sharply by +5.4 per cent in the quarter to be +10.7 per cent higher over the year.
Perhaps unsurprisingly the strongest increases were seen in Sydney, where lot values jumped by +22.8 per cent over the year to September.
Despite having the most expensive land prices, Sydney has the second largest average lot size at 537 square metres.
Somewhat counterintuitively Adelaide has the smallest median lot sizes at 375 square metres.
The South Australian capital was the only capital city to see its lot values decline in over the year, down by -1.0 per cent.
Summarily the Australian population continues to grow strongly, but shovel ready land supply has not kept pace, resulting in rising lot prices.
Over the past five years median lot prices nationally have increased by around +22 per cent to $225,000.
Problems in the "Iron Triangle" with losses in Whyalla - reports ABC here.