UDIA says land shortage an issue, particularly in South Australia THE Urban Development Institute has called on the Federal Government to establish a strategic plan aimed at addressing land shortages. As part of the plan - outlined in the UDIA's annual State of the Land report - cities would be required to maintain a specified rolling supply of development-ready land to meet demand driven by population growth. UDIA SA executive director Terry Walsh said the report was particularly relevant to South Australia, where land supply remained a major concern. "While the 30-year plan identifies both infill and fringe growth areas, much of the required land is either not zoned or not equipped with core road, water and power infrastructure," he said. Demand from developers has forced down the median lot size in Adelaide to just 371sq m - the only mainland capital city with a median lot size of less than 400sq m. Mr Walsh said land on the urban fringe and in infill areas needed to be rezoned to allow for further development, pointing to a June 2012 survey of major developers which forecast that less than 4000 lots would enter the market within the next year. "Unless the authorities provide a circuit-breaker, there's a strong chance that many of the lots proposed for development will be placed on hold and construction will cease until they see signs of the market recovering," he said. The State of the Land report also recommended: FEDERAL funding to be linked to comprehensive State Government land-use plans; THE Productivity Commission to undertake an inquiry into "developer levies"; REFORM to the processes around the assessment of development applications; and A BI-ANNUAL audit of all Commonwealth-owned land.