The median price of a block of land hit a record high of $369,530 in the final quarter of 2024.

Analysis of 52 of Australia’s major housing markets shows land lot prices are 8% higher than a year ago. The HIA-Cotality Residential Land Report says this increase is far more substantial than price growth in 2022 and 2023. During the same period, the number of lots of land sold was down by 5.7%. The report says the fact that prices increased at a time when sales decreased reinforces the fact that there is a shortage of shovel-ready land.

Cotality Economist Kaytlin Ezzy says this is a significant barrier preventing the delivery of new housing stock to the market. She says while some of the previous hurdles in delivering new detached housing, including material and labour shortages, have abated, land availability and affordability remain significant blockers. Real Capital Analytics data shows the cost of land for housing development has risen by 75% in the past five years, with median development site costs going from $4.8 million in 2020 to $8.5 million in 2025.