Pete Wargent BlogSpot\ 23 October 2018
Land prices up another 16 per cent
Property transaction volumes have been crippled in recent months.
But one key dynamic has not changed.
The capital cities continue to create hundreds of thousands of the most favourable employment opportunities…and there still ain’t any more well-located land.
Capital city vacant land prices increased by a massive 16 per cent to a record high of $336,124 over the year to June 2018, as supply fails dismally to keep pace with demand.
This was much faster than the 5 per cent increase for regional lot values.
Sydney may still have the highest land price at $477,250 at the end of the June quarter.
But Melbourne recorded faster growth, with the median land price per square metre exploding another 27 per cent higher higher over FY2018.
Sydney’s median vacant land price per square metre is now $1,100, ahead of Melbourne at $885.
From the HIA:
Upwards pressure on capital city land values will continue:
Construction costs are also rising faster than inflation.
And accordingly, the future price of new detached housing will be “inevitably higher” according to CoreLogic analysis.