According to investigations by a new report, the average national land prices, after suffering declines all through 2008, have seen a rise in for the second consecutive quarter. The findings have been a result of the latest residential land joint report presented by the Housing Institute of Australia (HIA) as well as property information posted by rpdata. com.

The report was quick to show that the rates of a median law piece of land in Australia has seen a 1.1% increase in the June 2009 quarter, and the average price now stands firm at $174,490. Also, the report confirms that during the said period, Sydney emerged as the most expensive market, where the median land price averaged at $255,000. Mallee in Victoria, on the other hand, took grounds as the most affordable market with a price of $70,000.

"The challenge now is to ensure that land price appreciation does not get out of control the way it so clearly did in the last up-cycle, eroding housing affordability to a disproportionate extent along the way", said HIA Chief Economist Dr Harley Dale.

Despite the soaring land prices, the sales have been low. Analysts believe that this could be because of the current economic situation and are expecting a turnaround real soon.