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“HIA has been seeking actions that can address Melbourne and Victoria’s land supply shortages for several years,” said Fiona Nield, HIA Executive Director, Victoria.
“Over the next five years, Victoria is forecast to commence construction on almost 160,000 detached houses and almost 120,000 multi-unit dwellings. The Liberal/Nationals announcement today that it will free up an additional 150,000 new housing lots will go a long way to supporting these homes being delivered in an affordable way.
“The surge in home building has taken up much of the available land in the last two years, meaning action will be needed during the next term of government to avoid a severe shortage in the next three years.
HIA’s election imperatives call on an incoming government to:
“HIA’s latest data shows an unusually sharp rise in the price of residential land indicating the supply of land is not keeping up with new demand that has emerged during the pandemic,” said Ms Nield.
“Over the course of the pandemic, median lot prices in Melbourne increased by 33.3 per cent, while prices in regional Victoria are up by 64.9 per cent. These are not normal increases – they are among the fastest rates of increase in the last two decades.
“At the same time that prices have surged, the volume of lots being sold in Victoria has plummeted to multi-decade lows.
“Such a fall in sales in the face of such strong demand is indicative of a shortage of shovel ready land.
“An adequate supply of land underpins better housing affordability. Current shortages are resulting in additional costs to new home buyers and if sustained, will see costs rise even further.
“It can take over a decade to bring unzoned land onto the market for housing – this is simply not fast enough.
“Addressing the processes that brings land to market, as has been announced today, can assist in increasing supply and stabilising land prices.
In addition to the Liberal/Nationals commitment to stamp duty cuts for first home buyers, these measures would help to support home ownership.
“With the Victorian state election just around the corner, it is critical that we see new policies adopted by all sides of politics to keep the residential building sector strong and support for home ownership,” concluded Ms Nield.
Read HIA’s State Election Policy Imperatives
“The RBA decision to keep interest rates in restrictive territory today will not stop the improvement in leading indicators of future home building,” stated HIA Senior Economist Tom Devitt.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Housing Industry Association welcomes today’s announcement by the Cook Labor Government to review key aspects of the home building contracts legislation and provide the building regulator with additional powers to work with builders in distress.