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$vuetify.icons.faPhone1300 650 620

Land shortages push lot prices to record high

Media release

Land shortages push lot prices to record high

Media release
“The national median price of a residential block of land in Australia reached $340,000 in the September Quarter 2023, a new record high and up by more than a quarter compared to before the pandemic,” stated HIA Senior Economist Tom Devitt.

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

“Shortages of shovel ready land saw lot prices surge during the pandemic, while the volume of lots being sold has plummeted to twenty-year lows,” added Mr Devitt.

“This ties in with other data showing the number of homes commencing construction is also lower than at any point in the last decade. 

“Alleviating the housing shortages in Australia will require a supply-driven approach, and National Cabinet’s ambition to build 1.2 million well-located homes in five years is a step in the right direction.

“It would further require the release of more shovel-ready residential land into the market, which the data suggests has fallen to levels inconsistent with required levels of home building. 

“Delivering the infrastructure needed to get more residential land remains a chokepoint, with developer contribution charges acting as a tax on new housing, compounding other taxes and regulatory constraints on home building.

“More taxes on supplying new homes means there will be less of it, which is not consistent with the Australian Government’s stated objectives,” concluded Mr Devitt.
CoreLogic Economist Kaytlin Ezzy said, "The continued increases in land prices, despite a higher interest rates environment, growing affordability constraints and, recessionary low levels of consumer sentiment, indicate just how constrained the supply of shovel ready land is. 

"The government's plan to provide 1.2 million new homes within five years is already an ambitious goal and would exceed the current record for 5-year completions, recorded over the five years to December 2019 (1.045m), by almost 15%. While the growth trend in construction costs appears to be normalising, helping to provide assurance for Builders and potential new home buyers, without a sufficient and consistent release of shovel-ready land, it will be an increasingly difficult goal to achieve," concluded Ms Ezzy.

For more information please contact:

Thomas Devitt

HIA Senior Economist
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