Housing target depends on faster land supply
Residential land prices fell just 0.4% in the March quarter to $403,570, but are still 8.7% higher year-on-year. Land costs are growing more than twice as fast as inflation and nearly twice as fast as wages.
Median residential land price is $403,570, up 8.7% year-on-year — growing more than twice as fast as consumer prices.
Are rising land prices slowing housing starts and hurting my building workload?
Builders and developers face rising land costs that squeeze project margins and slow housing starts, directly affecting workload pipelines for builders, concreters and allied trades.
Key takeaways
- Median residential land price sits at $403,570 after a tiny 0.4% dip in the March quarter.
- Land prices rose 8.7% over the past year, outpacing inflation and wages growth significantly.
- Slow land supply is a key barrier to meeting national housing targets.
- Trades reliant on new housing starts may see fewer projects if land costs stay elevated.
Related
New labour force data release following warnings that construction is 141,000 workers short
ABS Labour Force data for August shows unemployment nearing a five-year high. The construction sector is reportedly 141,000 workers short, compounding existing industry pressure.
Why it matters: Affects builders, plumbers, electricians and all trade types. Worker shortages mean longer project timelines, harder subcontractor sourcing, and upward pressure on labour costs.
New rules add thousands to the cost of a new home as Tasmania falls years behind on housing
From today, all new homes built in Tasmania must meet the full Livable Housing Design requirements. The Housing Industry Association says this adds thousands of dollars to the cost of building a home.
Why it matters: Builders and carpenters in Tasmania must now design and build to the full livable housing standard, which raises per-home costs and may change quoting, design and compliance work.
ACT housing approvals slump puts 2030 target under pressure
Building approvals in the ACT dropped by half in the three months to August compared to a year earlier. The slump raises serious doubts about whether the territory can meet its 2030 housing supply target.
Why it matters: Builders and related trades in the ACT face a shrinking project pipeline, meaning fewer contracts and less work ahead if approvals don't recover.