A report into the demand for residential land has flagged an improvement in the markets of Sydney, south-east Queensland and Perth in the next five years.
The study, by economic forecaster BIS Shrapnel, shows most residential land markets around the country were fairly depressed in the last year.
The report's author, Angie Zigomanis says the recent property downturns in Sydney, Brisbane, Perth, and on Queensland's Gold and Sunshine Coasts, have created the right conditions for a rebound.
"The weak level of construction means under-building is taking place and there's a rising deficiency of dwellings," Mr Zigomanis said.
"But also the low prices - or the falls in prices for houses and land - in recent years, together with the reductions in interest rates over the last 12 months, has meant that affordability has improved fairly dramatically in those cities now." But demand for land in Melbourne and Adelaide is expected to remain subdued, after recent record surges in property prices in those cities.