Australian land values fall again
Aggregate land values in all categories have declined relative to GDP for the second consecutive year, writes Gavin R. Putland.
Today's release of the Australian System of National Accounts (ABS 5204.0) includes aggregate land values at June 30, from 1989 to 2012 (Table 61), and GDP for the respective financial years (Table 1). We have divided the former by the latter and plotted the results below.*
In proportion to GDP, all aggregates declined for the second consecutive year, and the “total” and “residential” aggregates fell below their “GFC” minima. In nominal (current-dollar) terms, the “total” and “residential” categories again declined for the second straight year, but remained above the “GFC” minima.
* The graph was corrected on Nov.3. In the first version, the curves were truncated at the right-hand end.