Finder makes money from featured partners, but editorial opinions are our own.

Land prices head higher


land for saleResidential land prices have hit a fresh high, straining housing affordability.

The HIA-CoreLogic Residential Land Report has revealed a 2.6% rise in residential land prices for the June 2016 quarter. The median residential land price hit a new high of $237.535 over the quarter, while the number of lots transacted fell 9.3% year-on-year.

HIA senior economist Shane Garrett said the rise in residential land prices was causing housing affordability to deteriorate across many markets.

“With market supply having fallen further over the past year, policy makers need to look very carefully at ways of bringing about more sustainable outcomes in residential land supply. This will inevitably involve tackling issues around the pace of land release, the bottlenecks in the planning process and the excessive burden of taxation,” Garrett said.

CoreLogic research director Tim Lawless said strong demand for housing was likely to continue to drive land prices higher.

“While unit markets have seen approvals and construction activity reach spectacular highs, supply levels across the detached housing sector remains insufficient in many areas. The lack of available vacant land highlights that greenfield housing markets are likely to remain undersupplied which implies further upwards price pressures across the key vacant land markets where demand remains strong,” Lawless said.

Latest home loans headlines

Image: Shutterstock

Find the right home loan now

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site