Melbourne Leads Land Price Rises

Posted on 26/10/2018  
Melbourne Leads Land Price Rises

A new report has found the average price of land in capital cities has risen 15.5% in the past 12 months, led by a major increase in Melbourne.

The price of capital city vacant residential land grew three times as fast as blocks in regional areas, according to the latest national land report, although the growth has not been evenly spread in the capital cities.

The average price uplift was primarily driven by a 38.4% rise in Melbourne, while Perth land prices rose 14.1% over the past year, the Housing Industry Association-CoreLogic Residential Land Report said.

Every other major capital saw single-digit rises, with Brisbane land prices growing the slowest of the capitals at 1.5%, followed by Hobart (2.1%), Adelaide (2.8%) and Sydney (4.2%).

Median lot prices in the major cities include $238,750 in Brisbane, $477,250 in Sydney, $375,000 in Melbourne, $250,000) in Perth, $220,000 in Adelaide  and $148,000 in Hobart.

“On a per-square metre basis, Melbourne is still the capital city market with the strongest price increases over the past year,” the report says. “Over the year to June, the price of land rose by 26.5% in Melbourne, 8.6% in Adelaide, 7.5% in Brisbane, 6.3% in Sydney and 2.2% in Perth. Prices in Hobart fell by 6.4%.”

The report found that the Gold Coast had the highest median residential lot value in Queensland at $260,000, while the Sunshine Coast ($255,000) also had a higher median price than Brisbane.

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