Published : 28 September 2015
Over the 2014-15 financial year vacant land selling prices have continued to rise across the combined capital cities - but have fallen over the year in regional markets.
According to CoreLogic RP Data Senior Research Analyst, Cameron Kusher, data based on settled sales over the 2014-15 financial years shows that vacant land selling prices have increased by 6.0% across the combined capital cities. But while capital city land prices are increasing, across the combined regional markets land prices have fallen by -3.4% over the year.
As at June 2015, the median selling price of vacant land was recorded at $258,543 across the combined capital cities and $156,500 across the combined regional markets. Median land prices in regional areas of the country are now -39% lower than those in capital cities, the widest differential since August 1990. Over the 25 years to June 2015, median vacant land prices have increased by 417% (6.8%pa) across the combined capital cities and by 422% (6.8%pa) across the combined regional areas.
While prices have risen fairly consistently, there has been a consistent trend towards smaller lot sizes. Although you pay a lot more for land you get a lot less for your money.
The median lot size has been reasonably stable across the combined capital cities over the past 12 months, whereas it has actually risen by 8.3% over the past year across regional markets. The median lot size for capital city vacant land has seemingly hit a trough having been relatively stable over the past two years. Meanwhile lot sizes have trended higher over the past year in regional areas.
With higher prices and fairly steady land areas, the rate per square metre of land has continued to rise over the past year across the combined capital cities while it has fallen in regional markets. At the end of June 2015 the rate per square metre was recorded at $557 across the combined capital cities and $170/sqm across the combined regional markets.
When looking at individual capital cities, vacant land prices are much higher than all other capital cities in Sydney. The cost of vacant land has risen sharply over the past year in Sydney, Melbourne and Perth over the past year. Typical lot sizes have actually risen across most cities over the past year but have generally fallen over the past decade. On a rate per square metre basis, vacant land in Sydney and Perth is much more expensive than all other capital cities. The rate per square metre has generally risen over the past year.
The cost of capital city land is still rising - which means the cost of new housing is also rising.