{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research and forecasting Economics Housing outlook Tailored market research Economic reports and data Inspiring Australia's building professionals HOUSING The only place to get your industry news Newsroom
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host an HIA apprentice? Apprentice partner program Builder and manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies and tool insurance Paperwork gone digital Contracts Online HIA Tradepass HR Docs SafeScan - managing workplace safety Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections Trusted legal support Legal advice and guidance Professional services Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials and products Concrete, bricks and walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Hear what our apprentices say Advice for parents and guardians Study with us Find a course Get your builder's licence Qualifications Learn with HIA
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Get involved Become an award judge Join a committee Partner with us Get to know us Our members Our people Our partners Mates Rates What we do Mental health program Charitable Foundation GreenSmart
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Australian Housing Awards Awards program National Conference Industry networking Events
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Products Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Cost of land rises twice as fast as building materials

Media release

Cost of land rises twice as fast as building materials

Media release
“The cost of residential land has risen more than twice as fast as the cost of building materials over the past year,” said HIA Chief Economist, Tim Reardon.

The HIA-CoreLogic Residential Land Report provides updated information on sales activity in 51 housing markets across Australia, including the six state capital cities.

“The shortage of building materials has caused delays to home building across the country and added 4.0 per cent to the cost of homebuilding in 2020/21, according to the ABS. At the same time, the cost of residential land prices rose by 8.5 per cent, adding further to the cost of new home building,” added Mr Reardon.

“Land supply has been in tight supply for the past two decades and the surge in demand in 2020 has seen land prices in Sydney rise 27.1 per cent in the past year alone. The strength of demand for land is set to continue throughout 2022 and into 2023. 

“As land is a key component of housing, this increase in price has been a key driver of the rising cost of homes and the decline in housing affordability.

“There is little state and Australian governments can do to improve global supply chains and improve the availability of building products, but they are in direct control of the volume of land available for home building.

“Ensuring there is an adequate supply of land to meet housing demand is a key responsibility of state and territory governments and one of the necessary steps to addressing the affordability challenge. There is no better time than now to increase the supply of available land and make a generational step toward improving housing affordability,” concluded Mr Reardon.

According to Tim Lawless, CoreLogic’s research director: “The number of vacant land sales has been easing over recent quarters due to a combination of less stimulus along with scarcity of supply.  The HomeBuilder grant saw demand for vacant land brought forward, with land sales surging through the second half of 2020.  However, the more recent trend has been a slowdown in land sales but a surge in detached housing construction as the nation moves into the early stages of what is likely to be an extended period of residential detached housing construction.  

“The sharp rise in vacant land prices over the year, together with rising construction costs, will place further upwards pressure on the cost of new housing.  The lift in land prices and residential construction costs along with the value of established housing rising rapidly, is set to add further pressure to housing affordability challenges that are becoming increasingly apparent across the country,” says Mr Lawless.

 

For more information:

 

Tim Reardon

Chief Economist

CoreLogic Media Team 

P: 1300 472 767
E: media@corelogic.com.au

CoreLogic

Breaking news
View all $vuetify.icons.faArrowRight
02 Dec
Investor activity in housing increases

The value of loans to investors continued to increase in October to reach its highest level since April 2015.

01 Dec
Brynor Constructions are three-time HIA Eastern Victoria Home of the Year Award winners

Outstanding homes and projects from across Gippsland and the Mornington Peninsula honoured with 2021 HIA Awards.

01 Dec
Modern codes needed for modern homes

HIA release consultation paper on regulatory barriers for prefab homes.

01 Dec
Ongoing restrictions in place across the Territory

The Chief Minister has confirmed today that the current lockout restrictions for Robinson River ended today, as scheduled.

Breaking news
View all $vuetify.icons.faArrowRight
02 Dec
Investor activity in housing increases

The value of loans to investors continued to increase in October to reach its highest level since April 2015.

01 Dec
Brynor Constructions are three-time HIA Eastern Victoria Home of the Year Award winners

Outstanding homes and projects from across Gippsland and the Mornington Peninsula honoured with 2021 HIA Awards.

01 Dec
Modern codes needed for modern homes

HIA release consultation paper on regulatory barriers for prefab homes.

01 Dec
Ongoing restrictions in place across the Territory

The Chief Minister has confirmed today that the current lockout restrictions for Robinson River ended today, as scheduled.