Price of vacant land rising
The cost of vacant land in the capital cities climbed significantly over 2013, according to new information from RP Data.
The analysis found the median price of a block of land in the cities climbed by 6.9 per cent over 2013, the largest annual change since the 12 months to August 2011.
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However, RP Data research analyst Cameron Kusher said there was a growing disparity between the price of land and the median lot size.
Hobart had the lowest median selling price for vacant land, at only $150,000. However, the city offered the largest median lot size, at 828 square metres.
Sydney, on the other hand, had the most expensive median sales price at $305,000 but a median land size of only 556 square metres.
Mr Kusher said lot sizes had shrunk significantly over the last two decades, despite a slight reversal of this trend in 2013.
“At the end of 2013, the average vacant lot size across the combined capital cities was 500 square metres, which is slightly higher than the 466 square metres at the end of 2012,” he said.
“However, the average lot size has reduced quite significantly over time; 20 years ago the typical lot size was a much larger 701 square metres.”
Mr Kusher said as prices have risen and land sizes have shrunk, the price per square metre of land has sharply increased.
At the end of 2013, the price per square metre for vacant land was $507. By comparison, the price per square metre 20 years ago was only $76.47.
On this analysis Perth came out as the most expensive city, with a ratio of $631.46.
Hobart, on the other hand, cost only $147.82 per square metre.
Adelaide had the smallest median land size at 375 square metres. As a result, the ratio price was a fairly high $508.60.
Vacant land is currently $454.14 per square metre in Melbourne and $391.67 per square metre in Brisbane.
