However, it was the other way around for regional areas as vacant land prices fell by -1.9% over the year.
The median selling price now sits at $164,250 – 65% lower than the median price in capital cities. This is the largest differential since September 2003.
According to CoreLogic, the rate per square metre for vacant land increased by 4.3% across capital cities, while it fell -17% across regional areas. This means that capital city vacant land is now 231% more expensive than vacant land in regional areas – the largest differential on record.
“While it’s no surprise that the cost of vacant land in Sydney is significantly higher than in all other capital cities, of note is just how strong the increases in land prices have been in Sydney and Melbourne over the past year, with rises in excess of those for home values,” said Cameron Kusher, CoreLogic head of research.
“An increase in the amount of land available for development, as well as lower fees and charges applied to land development, and more competition amongst developers would likely reduce land costs. Potentially, this would slow the escalation in housing costs, particularly in Sydney and Melbourne.