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{{propApi.successMessage}} {{region}} Change locationLand supply re-emerging as the number one constraint on home building
Land supply re-emerging as the number one constraint on home building
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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.”
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Annual Regional Meeting of Members of Victoria Region
Notice is hereby given that the Annual Regional Meeting of Members of the Victoria Region of Housing Industry Association Limited will be held on Monday 16 February 2026 at HIA Cremorne Office – Level 1, 8 Gwynne Street, Cremorne, Victoria, 3121 commencing at 5.00pm.
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