Cheap Land

Reporter: Damien Hansen
Broadcast Date: October 29, 2009

With interest rates now headed upwards and home owner grants coming to an end, you might think buying a block of land is becoming increasingly out of reach. Well the leading property group in Australia says there's still great buys out there for well under $100,000.

Harley Dale from the Housing Industry of Australia has pin pointed the top 5 hot spots.

"There are regional areas around Australia where a residential block is still available for under $100,000," said Dale.

"The two most affordable states for housing for some time now have been South Australia and Tasmania."

Making the list is the area on the fringes of Devonport Tasmania where land can be bought for $72,000.

"Areas such as Burney and Devonport in the North West of Tasmania are affordable markets because they are relatively small populated markets. There's a lifestyle appeal there for people moving from other parts of Australia," said Dale.

Berry in Southern Tasmania also makes the top 5 with land going for $82,000.

Next on the list is land in Mallee, Victoria.

It's the cheapest regional market according to the Housing Industry coming in at $70 000 for an average block - and there's plenty up for grabs the top pick for value for money.

"It reflects the fact that Victoria as a whole is a really affordable state you've got extra money from the state government if you want to get in as a first home buyer and they simply have a far more affordable product than in many other parts of the country," said Dale.

The building grant for building a new home in Victoria is still $14 000, the same lucrative incentive is on offer in South Australia.

In that state land in Mt Gambia South goes for $76,000. In Murray Lands, land can be purchased for $80 000.

"South Australia is a bit like Tasmania the smaller states don't have the affordability hurdles as the bigger states have and that shows up in cheaper lands prices," said Dale.

If you believe the Housing Industry, time is running out for cheap land. Their data shows we've seen the bottom of the property market.

"It's certainly looking like though the first half of 2009 the price of residential - primarily a new block of land was starting to rise again," said Dale.