Australian Land Prices Surge

The supply of shovel-ready lots cannot keep up with the demand for detached homes and thus, the land prices in capital cities within Australia are surging.

Housing Industry Association and CoreLogic have released their latest Residential Land Report and it shows that the price of vacant residential lots in capital city markets has increased by 6.5% for the quarter.

Greater Adelaide leads the show, with a quarterly increase of 21.8%, whilst Greater Sydney, Greater Hobart and Greater Melbourne have registered the highest year-on-year increases of 32.2%, 30.1% and 21.3%, respectively.

On the back of record levels of activity in detached housing construction, the demand for vacant residential lots is still in strong demand. This is despite the expiration of the Commonwealth Homebuilder grant, which is thought to be a huge driving factor in the housing crisis throughout the pandemic.

A shift in household preferences for more space and greater amenities also comes with the Covid pandemic, as many Australians are spending more of their time at home. The ability to work from home also sees many families moving to regional areas.