Land Prices Growing

Land prices are on the up, with new data revealing prices are growing at more than three times the rate of inflation.

The latest HIA-Cotality Residential Land Report shows median land prices increased by 6.8% in FY2025.

HIA Chief Economist Tim Reardon says the surge is a major obstacle to Australia meeting the Federal Government’s target to build 1.2 million new homes over five years.

“In recent years, home buyers have flocked to states like Western Australia, South Australia and Queensland where abundant and affordable shovel-ready land has been available, “he says.

This increase in activity means that, unfortunately, these areas are now producing some of the fastest increases in land prices.

The biggest increases in lot prices are in Perth, which is up 29.8% to $375,000.  Hobart rose by 20.8% to $320,000, and Brisbane is up 9.2% to $366,300.

Adelaide is up 8.2% to $292,000, Sydney is up 2.8% to $689,500, and Melbourne is up 2% to $382,500.