Australian home prices will keep rising due to a building and land shortage, according to a unit of the Property Council of Australia.

Some 200,000 homes are needed to make up for shortfalls from past years, in addition to the 155,000 that must be built every year to keep up with demand, Caryn Kakas, executive director of the Residential Development Council, said in an interview. That compares with a Housing Industry Association estimate of 130,630 housing starts in 2009.