Land prices across Australia are on the rise, with new data revealing a 7.6% increase over the past 12 months.

According to HIA economist Maurice Tapang, an analysis of 52 housing markets shows the median land price in the September 2024 quarter reached a record $366,510.

The surge has been driven by capital city markets, where prices have jumped 9.2% to $408,160 over the year.

Tapang says price growth is strongest in areas where home building is increasing or where infrastructure costs are high.

Brisbane and Perth led the way, with median land prices rising 21.2% and 38.6%, respectively.

Sydney’s land prices also climbed, up 7.2%.

As prices rise, more buyers are seeking affordable alternatives, either by purchasing in regional areas or opting for smaller lots.

Tapang highlights that regional land remains more affordable, with median prices rising just 2% to $281,910 over the past year.