In the third quarter of 2025, land costs showed a varied pattern across the globe, shaped by local market dynamics, interest rates, and supply conditions. In the United States, demand for residential land dropped sharply as builders pulled back due to rising construction costs and lower profit margins.
Despite the slowdown in buyer activity, land prices stayed relatively high because many sellers were unwilling to lower their expectations, especially for finished lots where supply remained tight.
In Australia, land costs continued to climb, particularly in Adelaide, where strong demand met limited availability. Delays in infrastructure development and fewer new land releases pushed prices higher, even as lot sizes shrank. Buyers competed for smaller pieces of land, driving up price per square metre.
Over in Japan, land prices rose at the fastest rate in decades. Urban and tourist-friendly areas saw strong increases, with investment pouring in from both domestic and international buyers. The weaker yen made Japanese real estate more attractive to foreign investors, boosting the market in both residential and commercial zones.
Globally, the land market in Q3 reflected a split trend some regions faced upward pressure due to strong demand and limited supply, while others showed signs of cooling as affordability and construction challenges set in.