by Sanjeev Sah | Mar 12, 2024 | Market Updates

During the September quarter of 2023, the average price of residential land in Australia hit a record-breaking $340,000, according to the latest Housing Industry Association (HIA) and CoreLogicresidential land report.  

This marks a significant increase of more than a quarter since before the pandemic.  

HIA senior economist Tom Devitt said a lack of shovel-ready land has caused prices to skyrocket while the sale of lots has dropped to its lowest level in two decades.  

“This ties in with other data showing the number of homes commencing construction is also lower than at any point in the last decade,” he said. 

“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. 

“It would further require the release of more shovel-ready residential land into the market, which the data suggests has fallen to levels inconsistent with required levels of home building.”