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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 Housing Industry Association (HIA) has welcomed the Tasmanian Government’s move to crack down on copper and scrap metal theft, warning that construction site theft is adding to the risk that insurers are pricing into premiums for Tasmanian builders.
The Housing Industry Association (HIA) welcomes the Queensland Government’s continued investment in enabling infrastructure through Round 2 of the $2 billion Residential Activation Fund, but the funding must be tightly targeted to ensure it genuinely delivers new housing supply,” HIA Executive Director Queensland, Michael Roberts, said today.
The Housing Industry Association (HIA) will be sending a simple message to the inquiry into Capital Gains Tax (CGT) on residential property when it appears before the Select Committee on the Operation of the Capital Gains Tax Discount tomorrow – if you tax something more, you will get less of it.
The Housing Industry Association (HIA) has today welcomed the Tasmanian Government’s finalisation of the Building Amendment Bill 2026, ahead of its imminent introduction to Parliament. The Bill will formally pause further implementation of new National Construction Code (NCC) requirements in Tasmania.