House and land packages have long been a happy way for young families to own their own homes.
However, buying a piece of land has never been so expensive.
Research finds cities across Australia are seeing record prices for a block of land in a new development as some families are paying six figures more than 12 months ago.
The median price of residential land in so-called greenfield markets has risen the most in Brisbane over the year, according to data from real estate group Oliver Hume in its Quarterly Market Insights report.
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Queensland’s “resilient” market – particularly the south-east pocket – has been fueled by high levels of interstate migration, the report explains. More stock was made available to meet the appetite.
Brisbane’s median lot price climbed 107.7% year-over-year to $725,000. Land in Ipswich now costs $324,500, Oliver Hume found, up 41.1% on the year from $229,950.
Adelaide broke the $200,000 price barrier for new land for the first time.
The median of $205,000 represents an 8.5% year-over-year increase, reflecting pressure in the broader property market (Adelaide has seen the strongest price growth of any capital city for established homes, according to data of the domain).
Oliver Hume has found Adelaide’s new market sales numbers to be above the long-term average, due to its affordability compared to other capital cities.
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Lot prices in Victoria hit a new landmark of $379,000 – an increase of 17 from last year, the data showed. Geelong’s hot market has seen some of the steepest price increases.
In Geelong, a plot in a planned community costs $93,233 more than 12 months ago, rising from $299,767 to $382,000.
The Casey Town Council area, which covers Victoria’s south-eastern suburbs, saw the lowest room for growth, up $44,167 year-over-year to a median for new lots of $464,000 .
Rising interest rates continue to be a driving force in Australia’s pristine property markets, where new suburbs are emerging, Oliver Hume has found.
The report also pointed to the record high unemployment rate, general slowdown in established house prices, inflation, supply chain and construction hurdles and housing shortage as other contributing factors.