Price Per Square Metre Rising
Properties are getting smaller as the price per square metre rises according to Domain’s latest Price Square Metre Report.
The report shows that house and unit prices per square metre in capital cities have been trending upward over the past year.
Domain Chief of Research and Economics, Dr Nicola Powell says as the price per square metre increases, average land lot sizes are dropping in an effort to keep them affordable.
“(the) report reveals a trend of shrinking land sizes attributed to densification and rising land premiums. While this may seem counterintuitive, it actually creates more opportunities for home ownership (as) higher density translates to increased affordability.”
Powell says without the shift towards greater density and smaller land sizes over the past two decades, house prices would be vastly higher than they are today – higher by 44% in Perth, 16% in Adelaide, and 14% in Melbourne.
The report shows the price per square metre has increased by 14% in Perth in the past 12 months, 9.6% in Adelaide, 7.5% in Brisbane, 5.1% in Sydney and 0.8% in Melbourne. It has dropped by 2% in Canberra, -2.3% in Darwin and -2.7% in Hobart.
