Suburbs with larger land sizes are bucking the trend in terms of the housing market decline, the latest analysis has found.
In its latest analysis, property services firm CoreLogic compared broader performance across capital city residential markets from a price perspective with the five suburbs which have the largest average land sizes in each metropolitan area.
It found that on the whole, residential values in suburbs with greater land sizes were either declining more moderately or were achieving stronger value gains compared with the broader market.
In Melbourne, for instance, average house prices over the twelve months to February declined by 11.5 percent across the metropolitan area.
Over that same period, declines in larger land-size suburbs of North Warrandyte, Beaconsfield Upper, The Patch and Narre Warren North declined by only between 1.8 percent and 4.5 percent.
Larger declines were recorded in Park Orchards (9.4 percent), but this is still a more moderate decline compared with the overall market average.
In Sydney, meanwhile, values in the largest land-size suburb of Kenturst (down 17.8 percent) plummeted further compared with the market as a whole (11.5 percent).
Nevertheless, values in other suburbs with large land sizes including Ellis Lane, Grasmere, and Douglas Park declined by only 2.2 percent to 4.3 percent whilst those in Londonderry actually appreciated by 2.1 percent.
In Perth, values either rose or declined more moderately compared with average price declines of 6.7 percent in four of the five suburbs with the largest average land size (Bedfordale, Glen Forrest, Serpantine and Rolyeystone).
In Adelaide, meanwhile, prices in four of the top five suburbs by land size rose by more than the 0.7 percent rise across all suburbs for the year.
In particular, prices increased in Lewingstone by 11.1 percent, in Crafers West by 8.9 percent, in Aldgate by 8.3 percent and in Roseworthy by 5.1 percent.
Although this data broadly shows that suburbs with larger average land sizes are holding up better in the housing downturn, CoreLogic analyst Cameron Kusher said it also highlights that many buyers value larger land sizes.
“As new development increasingly moves towards higher densities and smaller lot sizes for houses, large housing lots are likely to continue to be highly desirable,” Kusher said.
“The desirability won’t be only for more space, but also where the potential for future sub-division may exist.”