News.com.au | Land Prices Surge as Demand Outstrips Supply in Red-Hot Market

Samantha Healy reports on the findings of Oliver Hume's Quarterly Market Insight report for the December quarter, published by News.com.au and the Courier Mail, revealing dramatic land price growth across southeast Queensland, Melbourne and Adelaide.

Brisbane led the charge, with median vacant lot prices rising from $720,000 to $935,000 in just 12 months — an increase of $215,000. The Gold Coast saw median prices climb nearly $166,000 over the year to reach $890,950, while Moreton Bay, Ipswich, Logan and Redlands all recorded significant gains. The conditions are stark: an 89 square metre block in Southport recently sold for $550,000.

Oliver Hume chief economist Matt Bell attributed the surge to a sustained mismatch between demand and supply, noting that unsold stock in many southeast Queensland locations sat below one month's supply at the end of December 2025. Bell said these conditions had driven buyers toward smaller, more affordable product as land availability remained critically constrained.

In Melbourne - Australia's largest land market by fundamental demand - median land values rose 0.5 per cent during the December quarter to $408,000, up four per cent over the year. Bell expressed confidence in Melbourne's outlook for 2026, pointing to positive interstate migration, a recovering established housing market, and the strongest relative affordability compared to other major land markets in decades. Adelaide's median land price reached $371,000, continuing to close the gap on Melbourne.

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