Let’s go to Kathmandu. Rising housing prices have had a major impact on new home construction in Australia.

A report by the Housing Construction Industry Association has shown that the price of land for new houses has increased exponentially across the country.

According to the report, land prices for new homes have increased by more than 513 percent since 2000. In the same period, the cost of construction and the cost of skilled workers increased by about 150 percent.

In the one year to September 2025, national-level land prices rose by more than 10 percent, which is three times the rate of price growth in the overall economy, the report said.

“Land is one of the main reasons why house prices are rising in Australia,” the Federal Economist said. According to the government’s policy, infrastructure costs, delays and planning fees are included in the price of the land and the new home buyer has to pay. ”

“Shortage of land that can be built immediately is the main part of the solution,” he added. Australia’s federal, state and territory governments set a target of building 1.2 million new homes across the country over five years in 2023.

According to the 2025 annual report of the National Housing Supply and Affordable Housing Council, 177,000 new homes were built in 2024, less than the estimated demand of 223,000.

The report predicts 938,000 new homes will be built within five years from 2024, but no state or region is likely to meet its national target.