Land Prices Rising
Encouraging developers to deliver more units in regional areas could help regional towns cope with growing populations, the Mater Builders Association has told a national housing summit.
The national median price of a residential block of land in Australia reached a record high in the September quarter of 2023 according to the Housing Industry Association.
The HIA-CoreLogic Residential Land Report analysed sales activity in 51 housing markets across Australia and found the median price had hit $340,000.
HIA Senior Economist, Tom Devitt, says a shortage of lots resulted in prices surging during the pandemic.
Devitt says delivering the infrastructure needed to get more residential land remains a “chokepoint” as developer contribution charges were another issue constraining home building.
“More taxes on supplying new homes means there will be less of it, which is not consistent with the Australian Government’s stated objectives,” he says.
As a result of shortages the volume of lots being sold has dropped to a 20-year low.
“Alleviating the housing shortages in Australia will require a supply-driven approach, and National Cabinet’s ambition to build 1.2 million well-located homes in five years is a step in the right direction,” he says.
