That has allowed anyone who buys through the sharemarket an exposure to the housing boom.

In the past, the lion's share of property development had been in the hands of private individuals and large-scale private developers.

But the increase in exposure to the housing sector by the real estate investment trusts (REITs) has shaken up the market.

According to stockbroking analysts, up to 30 per cent of residential development is being undertaken by the REIT sector. And the competition is hot.

Stockland's desire to increase its exposure to the housing development market is driving its potential takeover of Australand.

Mirvac, Stockland and Australand have the largest exposure to the residential sector and they are all looking for more land.

According to Goldman Sachs analysts, housing momentum remains very strong, with building approvals rising to the highest levels since October 2002 driven by broad-based gains across components and regions. ''We expect that this will continue near-term due to interest rates staying lower for longer, changes in first-home-buyer subsidies focusing on newly constructed homes, sentiment around house prices to remain positive and finally the large structural undersupply of housing that still exists,'' the Goldman Sachs analysts said.

Stockland, Australia's largest residential property developer, is also working to alleviate the shortage of affordable, new homes in Sydney by preparing a major new residential land release to be marketed as ''Elara'' at Marsden Park in north-west Sydney.

Large-scale earthworks are due to start next month at the 178-hectare site, which will ultimately provide land for more than 2200 new homes next to to Richmond Road and at the heart of the Marsden Park precinct in the North-West Growth Centre.

Andrew Whitson, group executive and chief executive of residential at Stockland, said there had been strong demand for Elara.

"The new infrastructure partnership projects that will benefit customers at Elara include the widening of Richmond Road, the establishment of major new retail centres and business parks and Marsden Park's close proximity to the M7 motorway," Whitson said.

Located in the Blacktown Local Government Area, Marsden Park is within minutes of the recently upgraded Schofields railway station.

With an estimated end value of about $740 million, the project will be Stockland's second major residential development in Sydney's Greater West.

It follows the recent, highly successful launch of its 3000-lot, 350-hectare residential community at Willowdale at Denham Court in south-west Sydney.