Residential land prices are now 9.4% higher than 12 months ago.

Housing Industry Association data shows land prices increased at almost three times the rate of consumer price growth in 2025.

Senior Economist Tom Devitt says Australia’s median residential land price reached a record high in the December quarter 2025, of $397,840.

“The reacceleration of lot prices in recent quarters highlights the importance of addressing the constraints to the delivery of more shovel-ready land and infrastructure,” he says.

“Perth, Brisbane and Adelaide have been producing new record high prices for a number of years on the back of their leading of the national home building recovery. Sydney, Melbourne and Hobart have just recently produced their own record highs.”

Devitt says a lack of shovel-ready land and associated infrastructure has been the biggest constraint for new home building over the past few decades – even more than the increase in material costs and labour shortages.