Pete Wargent blogspot

PERSONAL/BUSINESS COACH | PROPERTY BUYER | ANALYST

'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Sydney Morning Herald.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Wednesday 26 April 2017

Land prices accelerate to record high

Land prices surge

The weighted median vacant lot value rose by 4.8 per cent in the December quarter to a record high of $254,406, according to the Housing Industry Association (HIA). 

Vacant lot prices rose by 9.3 per cent over the year, while volumes are declining sharply, implying a shortage of shovel ready land for homes in some capital cities. 


Source: HIA

The rise was driven by massive annual increases in Melbourne (+16.3 per cent), Sydney (+10.7 per cent), and Adelaide (+10.3 per cent).

There were however also increases in Brisbane (+5.4 per cent), Hobart (+3.1 per cent), and Perth (+0.9 per cent). 

Sydney has the most expensive median vacant land price, rising by 65 per cent over the last five years to $455,000, which is about 45 per cent of the median house price in the harbour city. 

Lower volumes

The increase in median lot values came despite a  significant drop in sales volumes since 2015.

Lot sales totalled 10,756 in the December quarter, down by 23 per cent from Q3 2016, and by a massive 40 per cent from the prior comparative period.