Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 15 February 2017

Capital city land prices rise

Lot prices up

The median lot value in Australia rose by another 3.3 per cent in the September 2016 quarter.

The Housing Industry Association (HIA) reported that the median lot value hit at a record high of $243,585. 

Since June 2012, the median lot value has increase by 28 per cent or nearly $54,000.

Source: (HIA)

The picture around the country was mixed.

Land values in the Kimberley have well and truly crashed by 74 per cent from the prior comparative period, for example.

At the other end of the scale Sydney's median lot value is not approaching $1,000 per square metre. 

Perhaps this is not all that surprising given that volumes were down by nearly 30 per cent in Sydney year-on-year, with a dearth of shovel-ready land being made available. 

The next most expensive city for vacant land prices is Perth at $701/sqm.

The volume of lot sales increased to 1,121 in the quarter, following some low volumes in previous quarters. 

Indeed, volumes were still some 7 per cent below their 2015 peak, according to the HIA. 

Overall, capital city land sales rose by about 10 per cent in the year to September 2016, reflecting higher demand and generally stronger economic conditions, while volumes across regional Australia posted a gain of just 1.1 per cent.

Real Estate, Land, Development Of