The Australian property market has enjoyed a slight improvement in residential land sales but the market in Northern Rivers and the Gold Coast is hamstrung by over-regulation and government charges, according to the Housing Industry Association (HIA).
Both of these areas have some of the highest priced land in Australia outside of the country's regional capitals.
The data from the recent HIA-RP Data Residential Land Report is not surprising because red tape and other issues have traditionally made it difficult for developers to bring plans to fruition in these two regions, said HIA executive director for Gold Coast and Northern Rivers Colin Buttenshaw.
"This red tape-driven extended planning process means that developers accrue large holding costs…before a block of land can be made ready to sell," Mr Buttenshaw explained.
Often the brunt of these costs will be borne by the consumer as property prices soar, suggested the director.
The land report found that the volume of land sales increased by 1.3 per cent in the last quarter, possibly indicating a recovery for the market.
Posted by Steve Douglas
