In the previous financial year land selling prices increased by 6 per cent across the combined capital cities, while across the regional markets they fell by 3.4 per cent.

The latest figures according to CoreLogic RP Data research analyst Cameron Kusher mean that median land prices in regional markets were now 39 per cent cheaper than capital city land.

The median in capital cities was $258,543 while it was $156,500 across the combined regional markets.

Mr Kusher said the difference between those medians was the widest gap since 1990.

Those buying land in capital cities may be forking out more than their regional counterparts but it doesn’t mean they get more bang for their buck.

The median lot size sold in capital cities was 452sq m while in regional markets it was 810sq m.

“With higher prices and fairly steady land areas, the rate per square metre of land has continued to rise over the past year across the combined capital cities while it has fallen in regional markets,” Mr Kusher said.

Vacant land cost the most in Sydney.

“On a rate per square metre basis, vacant land in Sydney and Perth is much more expensive than all other capital cities,’’ Mr Kusher sid.

He said the problem with rising land costs was it would lead to higher new housing costs.

CAPITAL CITY YEARLY MEDIAN LAND PRICE GROWTH

Sydney $361,500 16.6%

Melbourne $245,000 14.5%

Brisbane $216,500 -2.7%

Adelaide $203,000 3.8%

Perth $295,000 10.3%

Hobart $134,000 3.1%