Land prices have surged throughout Australia, with new data showing a 19.7% increase nationwide in the 12 months to March – but with some cities growing at higher rates.

Median lot prices in Hobart rose by 47%, followed by Sydney’s 43% and Melbourne’s 32%, according to the HIA’s Residential Land Report.

But senior economist Nick Ward suggests that rising construction costs and interest rates could dampen that in coming months.

“An unusually sharp rise in the price of residential land indicates the supply of land is not keeping up with new demand that has emerged during the pandemic,” Ward says.

The report shows the price of an average lot in Brisbane south, Adelaide Central and Hills district and Launceston more than doubled in the past 12 months, by 110%, 175% and 126% respectively.

The report says Sydney is the most expensive capital city for land with a median lot price of $1682 per square metre, followed by Melbourne’s $1044.