Land Sales Drop

As the cost of construction continues to rise, land sales have hit the lowest level in 25 years.

The HIA-Totality Residential Land Report shows there were just 8,250 lots sold nationally in the March Quarter 2025.

It says this coincides with the median price of residential land reaching a new high of $372,620 in the first quarter of the year.

HIA senior economist Tom Devitt says the cost of construction has risen by nearly 40% since 2019.

“From already weak levels, this deterioration in sales volumes, coinciding with record high lot prices, points to a worsening shortage of shovel-ready land across the country,” he says.

With less land being sold and fewer homes being developed, this will drive up demand and therefore the cost of established homes, according to Devitt.

He says of the big add-on costs when building is planning approval delays, which cost almost  $20,000 and can take more than six months to secure.