Land Prices Rise
Land sales are on the increase with many choosing to build despite constraints in the construction industry.
The latest HIA-CoreLogic Residential Land Report analysed sales activity in 51 housing markets across Australia.
It identified a “modest recovery” in residential lot sales which it says has pushed up prices.
HIA Senior Economist Tom Devitt, says activity is stronger in Brisbane, Adelaide and Perth.
“Residential lot sales picked up across Australia, increasing by 0.9% in the December Quarter to 10,666, to be up by 24.6% over the course of the 2023 calendar year,” Devitt says.
“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.”
