New figures just released by real estate research company CoreLogic RP Data show that vacant land prices continued to grow across the capital cities in Australia throughout the year of 2015.
Over the 12 month period the combined median price for vacant land in the capitals rose 4% to $265,000, with four cities – Hobart, Melbourne, Sydney and Perth – all registering double digit growth figures for the year.
The Capitals
Of all of the six capitals, Melbourne saw the largest increase in price for vacant land with a rise of 23.5% taking the Victorian city to a new median of $265,000.
Sydney saw the second highest rise with an increase of 20.2% leading to a new median price of $410,000.
Third on the list was Hobart which experienced a boom year with the new median price for vacant land there $150,000 – up 20%.
Perth was the fourth capital to see double digit growth with a 10.7% rise leading to a new median price of $299,000.
Finally Brisbane and Adelaide unfortunately did not fare so well with modest increases of 2.9% and 2.5% respectively leading to new median prices for vacant land being $230,000 and $205,000 in those two state capitals.
Comment From CoreLogic RP Data
Mr Cameron Kusher, who acts in the role of senior analyst at CoreLogic RP Data, has commented that the new figures released by his company may give some insight into why housing costs are so high across the capital cities of Australia.
Using Sydney as an example, Mr Kusher pointed out that with a median price for land being $410,000 the cost of a new home build there would be in the vicinity of $550,000.
He also made mention of the current political focus on housing affordability and he is of belief that there will be a renewed focus on the cost of vacant land in the capital cities, and the need for reforms to be introduced which would see developable land become more affordable across Australia.
Additionally, other geographical areas such as regional and rural centres might be on the receiving end of additional focus and attention as the average cost of land in those areas is much lower than in the larger capital cities.