Combined capital city selling prices increased by 8.1% over the past 12 months, with the median vacant land selling price recorded at $270,350 across the combined Australian capital cities.
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.
Do you have more than $200k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out