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Land prices in regional South Australia are among the most affordable nationally, according to new data from the Housing Industry Association (HIA) and RP Data.
Released on July 19, the most recent HIA-RP Data Residential Land Report reveals that residential land prices increased across Australia during the March 2013 quarter.
Despite this, the report shows that regional SA remains one of the least expensive markets and continues to be attractive to buyers.
East Gippsland in Victoria took out the number one spot as the least expensive regional market, yet five of the remaining nine places in the top ten were occupied by SA markets.
These included York and Lower North with a median lot price of $80,000, Murray Lands ($82,250) and Northern ($96,000).
Robert Harding, HIA executive director, South Australia, said that from its domination of the most affordable markets, it was clear that SA has "an affordability advantage" over other regions.
"This affordability advantage may well have been recognised by some quarters of the market, as we're starting to see the volume of land sales in some regions start to pick up from the depths plumbed in late 2011 and 2012," said Mr Harding in a statement.
He said that lack of affordable housing options elsewhere was often due to the high cost of the land component of properties.
At the other end of the affordability spectrum, Sunshine Coast was the most expensive regional market, with a median lot price of $266,000 during the March quarter.
It was joined by Richmond-Tweed in NSW ($234,000), Gold Coast ($225,000) and Mackay in QLD ($195,600).
In areas where the land part of the property equation is more affordable, buyers are in with more of a chance of getting a foothold in the market.
This is certainly something that those keen to build their own house may want to look out for.
Mr Harding believes that low lot prices are just one factor among many that make SA an attractive market for buyers.
"South Australia's relatively inexpensive land prices, combined with historically low interest rates make it an opportune place to build, if you're in the financial position to do so," explained Mr Harding.
First home buyers looking to take advantage of the state's First Home Owner Grant could be eligible for up to $15,000 for the purchase or construction of a new home, or up to $5,000 for the purchase of an established home.
