I recently wrote a blog about the RBA's charts on property construction costs.
The Reserve Bank's arguments were largely concentrated on construction costs being a major driver of property price growth.
While there is some merit to their arguments, RP Data's Cameron Kusher produced this chart below today which shows that although the median lot price in cities like Sydney has gone nowhere for a decade, the lot price per square metre has increased sharply in every capital city.
Fair enough, and he's right of course.
A variety of factors have conspired to put pressure on Australia's capital city land prices, as covered many times - including population growth, inadequate supply, record low interest rates and a number of other factors.
The RBA's arguments remain valid insofar as it remains very expensive per dwelling to construct multistorey blocks of apartments in capital city infill sites, but clearly there has been a considerable land price appreciation too.
Recent approvals data has shown a material uplift in the number of apartments to be constructed as opposed to detached dwellings.