newy.com.au – Infrastructure investment, planning reform and support for the building industry have been identified as critical to meeting housing demand across the Hunter and Central Coast, as new figures show approvals are rising but land prices remain a major barrier to supply.
The Housing Industry Association’s Industry Outlook Breakfasts in Newcastle and Gosford brought together industry leaders, government representatives and stakeholders to discuss housing forecasts, economic conditions and the major infrastructure projects expected to shape the regions.
HIA Hunter executive director Craig Jennion said the latest outlook showed the residential building sector was facing both strong demand and significant pressure.
“The outlook reinforces both the opportunities and pressures facing the residential building sector,” Mr Jennion said.
“The Hunter region continues to experience strong underlying demand for housing, with total dwelling approvals in the year to April 2026 increasing 27 per cent on the Central Coast and 6 per cent in the Hunter compared to the year prior.
“Despite this supply remains constrained by land availability, rising costs and regulatory complexity,” Mr Jennion said.
The recently released HIA-Cotality Residential Land Report showed the median lot price on the Central Coast reached $610,000 in the December 2025 quarter, up 13.5 per cent on the same period a year earlier. In Newcastle and Lake Macquarie, the median lot price rose to $565,000, a 10.78 per cent increase on December 2024.
Those figures placed the neighbouring regions third and eighth among the most expensive regional markets in Australia. The Hunter Valley remained comparatively more affordable, with a median lot price of $410,000, up 7 per cent on December 2024.
Economic analysis presented at the events also pointed to continuing challenges for the housing market, despite improving approval numbers. Dwelling investment is expected to moderate in coming years, while land prices are rising faster than incomes, construction costs and inflation remain concerns for builders, and interest rates and consumer confidence continue to affect demand.
“It’s clear that the building industry is at a turning point — rising costs, labour shortages, and shifting market conditions are reshaping the future of housing.
“The data reinforced that housing affordability pressures are being driven largely by land supply constraints and regulatory settings, rather than demand alone.
“Without a coordinated approach to unlock land, streamline approvals and support industry capacity, we will continue to fall short of the homes Australia needs,” Mr Jennion said.
The Australian Government’s proposed High Speed Rail program, particularly the Newcastle to Sydney corridor, was also a key focus of the discussions. Attendees were told the project could reshape connections between the Hunter, Central Coast and Sydney, with the potential to support up to 160,000 new homes across the corridor by 2061 and more than 99,000 new jobs, including 15,000 construction jobs a year during delivery.
The High Speed Rail Authority outlined how improved transport links could help unlock more diverse and affordable housing options and support stronger regional communities.
“The Hunter region is well positioned for growth, particularly with transformational infrastructure like the High Speed Rail, but planning decisions made today will determine whether we can meet future demand.
“We have the opportunity to deliver meaningful improvements in housing supply and affordability, but it requires coordinated action across government and industry,” Mr Jennion said.
