Crown land in the Pilbara could be given away for free as long as developers commit to build luxury high-rise apartments.

The government is apparently considering this option as a way to keep up with the mining boom and resultant housing shortages in the region that have caused property prices to rocket, according to the Australian.

Government officials said the strategy is intended to prioritise quality residential development, amid hopes that the development will attract further resources investment. The area's first apartment tower is already under construction in Karratha.

The Pilbara region has been one of Australia's property hotspots over recent years, as billions of dollars have been ploughed into the region by government and mining companies. Median house prices in Port Hedland increasing by 129% to $780,000 over the last five years.