By JOHN VAN KLAVEREN
THE Barwon region has the fifth most expensive land in Australia, according to Housing Industry Association (HIA) and RP Data figures.
The Residential Land Report listed local median land prices at $185,000, equal with New South Wales’ Hunter region and Mackay in Queensland.
Most expensive was Kimberley in Western Australia at $260,000 and the cheapest was Southern Tasmania at $70,000.
HIA senior economist Shane Garrett said residential land faced supply restrictions, causing a bottleneck and upwards price pressure.
The report pointed to pressure on residential land supply despite a recovery in new home construction, Mr Garrett said.
“We have long emphasised the importance of ensuring that an adequate supply of affordable, shovel-ready land will be crucial to any sustained recovery in new home building.
“That task is imperative now more than ever. All levels of government need to implement the necessary reforms to address the problems affecting the residential land market.
“Reducing the excessive taxes and charges on housing as well as reducing planning and land release delays are key areas that need attention.”
Mr Garrett said land sales were an indicator of detached house building down the line.
Urban Development Institute of Australia Victorian executive director Tony De Domenico said lack of supply certainly affected the region’s coastal areas, such as Torquay.
“Geelong is a different story with Armstrong Creek, Leopold and Lara, so there’s by no
means a lack of supply. “People are still buying but the cost of delivering land to the market, with all the taxes, charges and levies, is suffering upward pressure,” Mr De Domenico said.
“It also depends on what you are getting with your block. We’ve got sustainable environmental developments and public open space requirements, which other areas might not have.”
The Independent revealed last month that an international land affordability survey rated Geelong property as less affordable than New York.
The 10th annual Demographia International Housing Affordability Survey ranked Geelong at 7.3 based on its median housing price of $405,000 and median household income of $55,700.
The survey said Geelong was among the world’s least-affordable housing markets because of “restrictive land use policies”.
