AUSTRALIA’S ambitious goal of building 1.2 million new homes over five years is facing a steep climb – thanks to skyrocketing land prices.

The median price of residential land jumped 6.8 per cent over the 2024/25 financial year – more than triple the rate of inflation, according to the latest HIA-Cotality Residential Land Report.

HIA Chief Economist Tim Reardon says the fastest rises are in states that were once the nation’s bargain bins for land.

“Western Australia, South Australia, and Queensland have seen strong population growth and construction activity, but lot prices are now climbing fast,” Mr Reardon said.

Brisbane lots overtook Melbourne for the first time in nearly a decade, rising 9.2 per cent.

Perth lots surged 29.8 per cent over the year, almost 50 per cent over 18 months

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