Land prices surge as demand outstrips supply in red-hot property market

Land prices surge as demand outstrips supply in red-hot property market

Median land values rose by more than $200,000 in just 12 months in one Aussie city, as demand continues to outstrip supply in this red-hot region.

The latest Oliver Hume Quarterly Market Insight report for the December quarter, which analyses land values across key markets in Victoria, southeast Queensland and Adelaide, showed the median price for a block of land in migrant magnet southeast Queensland soared $111,000 in the 12 months to December, and a staggering $56,000 in the last quarter alone.

Brisbane’s median vacant lot prices rose even faster, up from $720,000 in December 2024 to $935,000 now – an increase of $215,000 in just 12 months.

• Median land values in Brisbane rose $215,000 in a year.
• The Gold Coast wasn’t much better, with median prices now $165,950 higher than a year ago to hit $890,950.
• A tiny 89sq m block in Southport recently sold for $550,000.
• 29A Meron St Southport recently sold for $550,000
• Buyers in Moreton Bay are now paying $110,450 more than a year ago, with the average block now costing $524,450.
• Elsewhere, prices are up $97,000 in Ipswich ($465,000), $86,750 in Logan ($462,000) and $84,900 in Redlands ($84,900).

Qld figures Oliver Hume QMI

Oliver Hume chief economist Matt Bell said Queensland had been experiencing a “very strong period of activity over the past two years with demand remaining elevated while new supply has been unable to keep pace”.

“This has placed significant upward pressure on prices,” he said.

“Across much of southeast Queensland, land supply in the new land market has remained materially constrained, with unsold stock month supply at the end of December 2025 sitting below one month in many locations.

“These conditions have driven a clear shift in buyer behaviour toward smaller, more affordable product.”

In Melbourne, land prices rose 0.5 per cent to $408,000 during the December quarter and four per cent over the year.

“The median price in Melbourne remains below that in southeast Queensland ($498,400), while Adelaide ($371,000) continues to narrow the gap,” the report said.

Melbourne remained Australia’s biggest land market in terms of fundamental demand for new housing and was still expected to grow strongly in 2026.

Nearly 200 luxury apartments set for Brisbane’s key Olympic Games district

Nearly 200 luxury apartments set for Brisbane’s key Olympic Games district 

“Despite the softening in December volumes, the Melbourne market is still well positioned to deliver growth this year,” he said.

“Positive interstate migration, a recovering established housing market and the best relative affordability compared to other major land markets in decades mean growth in volumes, and finally prices are coming,” he said.

VIC FIGURES Oliver Hume QMI

But it was a mixed bag in Victoria, with land values falling in Cardinia by $29,000 in 2025 to $420,000, down from $449,000 a year ago.

They were up in every other major municipality with the biggest yearly increases in Hume (+43,000) and Wyndham (+30,900).

Metro Melbourne land prices overall were up $16,000 over the year, now sitting at $408,000.

In South Australia, the biggest land price increase was in Onkaparinga, where the median cost for a block of land is now $492,5000, up from $345,000 in the September quarter.

There was no data for December 2024.

This 745sq m block at Lot 21, 586 States Road, Onkaparinga Hills, recently sold for $424,000

Other big gains were recorded in Barossa (+97,000), Light (+$93,000) and Playford (+34,990)

Overall, vacant lots in Greater Adelaide increased $79,000 over the year to reach $371,000.

But not all areas in Greater Adelaide posted gains, with land values falling $32,000 in Alexandrina, $20,000 in Mount Barker and $5000 in Victor Harbour.

Source: Samantha Healy, Property Journalist, The Courier-Mail