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The HIA-CoreLogic Residential Land Report provides updated information on sales activity in 51 housing markets across Australia, including the six state capital cities.
“Residential lot sales picked up across Australia, increasing by 0.9 per cent in the December Quarter to 10,666, to be up by 24.6 per cent over the course of the 2023 calendar year,” added Mr Devitt.
“Activity is stronger in Brisbane, Adelaide and Perth, where sales volumes recovered to levels consistent with – or greater than – pre-pandemic. This compares to Sydney, Melbourne and Hobart, where sales are still around 15-year lows or lower.
“This is consistent with other work by HIA pointing to a brighter outlook for home building in Queensland, South Australia and Western Australia, off the back of more affordable land, employment opportunities, and the exodus of residents from the other states and territories.
“What is worrisome is the effect this is having on prices. While lot prices in the weaker Sydney, Melbourne and Hobart markets appear elevated but contained, lot prices in Brisbane, Adelaide and Perth pushed up again towards record highs.
“Moreover, even in these stronger markets, sales volumes are still a long way down from pandemic heights.
“The fact that land prices are re-accelerating alongside such a modest recovery in sales volumes, suggests it will not be long before the number one constraint on new home building is, once again, the availability of land.
“State and local governments that do not help bring sufficient shovel-ready land to market – both greenfield and infill – will struggle to do their share of the Australian government’s national target of 1.2 million new homes over the next five years,” concluded Mr Devitt.
CoreLogic Economist Kaytlin Ezzy said, “The uptick in land prices and sales is following similar patterns to the overall housing market, with growth skewed towards the mid-sized capitals and corresponding regional markets.
“The combination of higher interest rates and low land supply has seen new annual dwelling approvals fall 12.8 per cent over the past year. While the government's $1 billion of additional funding for the Housing Support Program, announced on budget night, should help alleviate some of the infrastructure hurdles for land development, it will take some time for this to translate into an increase in land supply and land availability will likely continue to be a major factor hindering growth in overall housing supply.”
“The Housing Industry Association (HIA) welcomes commitments made today by Commonwealth, State and Territory Building Ministers in providing decisive action to pause non-essential building code changes and to reset how the NCC is developed and implemented going forward,” said HIA Managing Director Jocelyn Martin.
“The availability of skilled tradespeople has worsened across Australia as home building pipelines expand again,” stated HIA Senior Economist, Tom Devitt.
HIA provided comments on the revised methodology for the Australian Apprenticeship Priority List. The Australian Apprenticeship Priority List (AAPL) is an important tool to enable government and industry to focus and prioritise those industries most in need of assistance.
McT Design & Construction was named the 2025 HIA Northern Territory Home of the Year winner for a home featuring luxurious finishes, a thoughtful U-shaped design, smart automation, and seamless blend of style, comfort and practicality.