A fall in land sales activity over the July quarter has spelt a weak outlook for housing for the September quarter.
According to the latest Residential Land Report by the Housing Industry Association (HIA) and RP Data, the weighted median residential land value for Australia eased by 3.6 per cent over the July quarter.
"That is a sobering outlook, particularly in the context of a very tight rental market, which is already placing enormous pressure on low and middle income renters and aspiring first home buyers," HIA chief economist Harley Dale said.
RP Data senior research analyst Cameron Kusher agreed, commenting that falling land volumes and values indicated affordability factors rather than a lack slowdown in buyer demand.
"Australia's growing population is providing plenty of demand for vacant land, the issue is the price and location of the available land," Mr Kusher said.
"Overall, this data suggests that sales activity for vacant land will continue to soften over the coming months," he said.