Land values across the nation are soaring, with prices increasing at more than three times the rate of inflation, adding pressure to the country’s housing affordability crisis. According to the latest HIA–Cotality Residential Land Report, median land prices climbed 6.8% in FY2025, as buyers compete for limited available land across the country.

HIA Chief Economist Tim Reardon warns that rising land prices are a major challenge for the Federal Government’s target of building 1.2 million new homes over five years. “In recent years, homebuyers have flocked to states like Western Australia, South Australia, and Queensland, where abundant and affordable shovel-ready land has been available,” Reardon said. “However, this increased activity has resulted in some of the fastest-growing land prices nationally.”

Perth leads with a 29.8% increase, bringing its median lot price to $375,000. Hobart follows with a 20.8% jump to $320,000, while Brisbane is up 9.2% to $366,300. Adelaide’s median lot price rose 8.2% to $292,000, Sydney increased 2.8% to $689,500, and Melbourne gained 2% to $382,500. These sharp increases highlight the growing imbalance between land supply and demand, particularly in high-growth areas.

Experts say that delays in land release programs, higher infrastructure costs, and increased construction expenses are all contributing factors. The challenge now lies in ensuring enough land supply to meet housing targets while keeping affordability within reach for buyers. As population growth and migration continue to rise, the urgency for coordinated planning and government intervention becomes even more critical.