By Leith van Onselen
Core Logic-RP Data has released its Capital Markets Report for 2015, which contains some disturbing data on Australia’s land costs, which have gone vertical despite shrinking in size:
The price of vacant residential land across the capital cities has increased sharply over recent years. Over the 20 years to December 2014, the median price of vacant land across the combined capital cities has increased by 382 per cent or at a compound annual rate of 8.2 per cent. The ongoing rapid escalation in the cost of vacant land has contributed significantly to the overall rise in housing costs.
These increases are further exacerbated by a number of other factors, namely:
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
