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
Construction needs an effective enforcer not a paperwork obsession
The Housing Industry Association (HIA) warns that proposed national construction standards and new procurement rules miss the mark. It says the measures land hardest on home builders and argues for an effective enforcer rather than more paperwork.
Why it matters: Home builders and small residential contractors could face extra compliance paperwork and procurement requirements, adding admin time and cost to jobs without necessarily lifting building quality.
Trades shortages persist as work on the ground remains solid
Skilled trade shortages remain widespread across Australia. The HIA says demand for workers is being supported by the recovery in home building activity over the past year.
Why it matters: Builders, carpenters and other residential trades should expect continued tight labour supply. That can mean higher wage pressure, harder hiring and longer lead times on jobs.
Potential Commonwealth Standards for the Construction Industry
The Housing Industry Association (HIA) says it backs a lawful, safe, productive and sustainable construction industry and has long called for structural reform. It says the consultation on potential Commonwealth standards proposes several measures it is concerned about.
Why it matters: Commonwealth standards could add new compliance requirements for builders and subcontractors across residential construction. The article gives no detail yet, so the practical impact on trades is unclear.