The HIA-CoreLogic Residential Land Report has been released, which shows how Australian residential lot prices have soared over the past decade on the back of cheap credit, extreme immigration, and supply constraints.
As illustrated in the next chart, the median lot price across Australia’s two largest cities – Sydney and Melbourne – more than doubled in the decade to September 2022:
This surge in median lot values came despite the median lot size shrinking across both markets:
Accordingly, the land price per square metre rose even more aggressively across Sydney and Melbourne in the decade to September 2022:
The price per square metre has also risen across the other capital cities with the exception of Brisbane; albeit by far less than Sydney and Melbourne.
Sadly, Australia is transforming into a nation where housing choice is becoming limited to an expensive shoebox apartment or an expensive tiny lot on the fringe far away from amenities.
The situation will only worsen as the Albanese Government’s ‘Big Australia’ policy ramps immigration to record levels, in turn forcing more people to live within the constrained urban footprints of our major cities.
The only outcome from this Big Australia immigration policy is higher land values and more people living in smaller, more expensive housing.
