I looked here previously at some of the reasons why.
It shows (oops-a-daisy!)...
Indeed, land reclamation and remediation on the Hungry Mile was an integral part of Lend Lease's flagship Barangaroo project.
Overall, though, land reclamation on a large scale would likely be opposed in Australia, I feel.
3 - Lagged delivery of infrastsructure
Left to its own devices, the market seems to focus on building residential dwellings, but not enough other infrastructure.
Look at the extremely successful Gold Coast Light Rail project, for example, which notched up a rip-snorting 14 million trips in the year to 30 June ahead of the forthcoming Olympic Games. And people are still whingeing about it!
Australia's 10 year bond yield recently hit its lowest level on reocrd, so it's potentially a great time to borrow and build.
But we'll have to wait and see what Prime Minister Turnbull thinks about that, and whether the electorate has the appetite for debt.
But with the exception of handful of suburbs, in global terms Australia's urban populations are in fact anything but dense, as soon as you move away from their central cores.