Land prices are continuing to rise throughout Australia with Adelaide now recording the most affordable capital city land in Australia.

The median land lot price in Adelaide is $307,000 according to the Urban Development Institute of Australia’s annual State of the Land Report. Perth is $329,000, Melbourne, $403,000, South-east Queensland $417,000, ACT $651,750 and Sydney is the most expensive at $666,667.

UDIA National President, Col Dutton, says while there are some positive signs of improved supply in the land market, the apartment and multi-unit sector continues to have record low levels of output, which is weighing heavily on dwelling production.  “Housing supply shortages are set to continue due to elevated (and still growing) material input costs, labour shortages, combined with high inflation leading to cost of living pressures and interest rate rises,” he says.

“Across the past two decades, Australia has significantly under delivered new dwelling supply across the nation. This undersupply has contributed to the ongoing erosion of housing affordability and has driven down home-ownership rates and led to increasing household indebtedness.”