'iI read somewhere that the building cost of a house has only ever risen with the inflation rate, however, the cost of land has risen way above the inflation rate'
only partial correct!
for example,
sydney melbourne brisbane perth and auckland are the metropolis, where you would expect land prices to rise above the inflation rate, because of an influx of migrants!
other centres are becoming just service centres, servicing these metropolises
and the rate of increase of land prices has been less!
however, land prices have taken a tumble in the us and some other northern hemisphere countries,
