Purchasers are paying a lot more for vacant land and getting a lot less for their money in Australia’s cities, although prices in regional markets have fallen.
Vacant land selling prices have continued to rise in the capital cities, increasing by six per cent in the 2014/15 year, CoreLogic RP Data says.
In regional markets land prices fell by 3.4 per cent.
CoreLogic RP Data senior research analyst Cameron Kusher said median land prices in regional areas are now 39 per cent lower than in capital cities, the widest differential since August 1990.
There has been a consistent trend towards smaller lot sizes but again regional areas have fared better with their lot sizes increasing.
“The cost of capital city land is still rising, as an extension this means the cost of new housing is also rising,” Mr Kusher said in a research note.
“While restricted land supply and excessive charges associated with new development remain, we anticipate that the cost of vacant land and subsequently new housing will continue to rise.”
VACANT LAND IN CITIES VERSUS REGIONS
- Median selling price $258,543 v $156,500
- Median lot size 452sqm v 810sqm
- Size reasonably stable in cities; up 8.3 pct in regions