Land prices rise 23pc

Record lot prices

Australia's median lot price increase 23 per cent over the 3 years to March 2023, according to a media release from the Housing Industry Association, driven by a chronic ongoing shortage of land release. 

Catherine Cashmore disseminates...

The increase has continued nationally to a record high lot price of above $330,000 in spite of a 37 per cent drop in volumes over the year to March 2023. 

Source: HIA

Over the past decade Sydney's median lot price increased by +133 per cent, from $285,000 to $664,000.

Source: HIA

This is likely to continue, with Sydney the most geographically constrained capital city, being surrounded on all sides by the ocean and national parks, and with population growth being dialed up to record highs. 

Higher prices on lower volumes

It is sometimes argued that higher prices on lower volumes constitutes a 'bubble' - here's one such example from earlier today:

I don't think this currently applies to capital city land prices, though.

As fast as land is subdivided and put up for sale, it's being chewed up by record high population growth of up to 700,000 per annum at the current pace. 

Land shortages drive housing crisis

The Housing Industry Association's media release is below:

Source: HIA