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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
A beautifully executed renovation and two-storey extension of a 1900s period home in Wangaratta has been named HIA Northern Victoria Home of the Year at the 2025 HIA Northern Victoria Regional Housing Awards, held in Yarrawonga on Friday night.
“The expansion of the Home Guarantee Scheme announced by the Minister for Housing, Clare O’Neil MP, to take effect from 1 October 2025, will reduce the time to save a deposit by up to four years,” stated HIA Senior Economist Tom Devitt.
“Harnessing artificial intelligence to drive a once in a generation overhaul of planning systems across the country could be the circuit breaker Australia needs to deliver 1.2 million homes over next 5 years” said Sam Heckel HIA Executive Director, Planning & Environment.
The Housing Industry Association (HIA) is pleased to announce Structerre Consulting as the headline partner of the 2025 HIA Western Australian Housing and Kitchen and Bathroom Awards.