Land values jump over five years

November 21, 2019 BY

Vacant land across the state has seen significant growth over the last five years. Photo: ALISTAIR FINLAY

Peak real estate body head says increases make Victoria a good investment option.

A recent analysis by the Real Estate Institute Victoria on land values over the past five years has confirmed that Victorian property continues to go from strength to strength.

Meanwhile, over the same period, the median property size has dropped slightly, meaning that Victorians are now paying more for less.

REIV President Leah Calnan said while sales volumes have declined, continued strong demand across the state has resulted in consistent price growth.

“Victoria is home to some of the fastest-growing parts of Australia,” Ms Calnan said. “Nine suburbs across regional Victoria have had their land value more than double since 2014.”

“Victorian property is a growth asset. Anybody who bought into the market five years ago would have seen an amazing return.”

“While real estate commentary often focuses on clearance rates, it’s important to look at the how the long-term market is trending, as shown by the significant five-year change in land value per meter squared.”

The median price per square metre for undeveloped land in Victoria rose from $403 in 2014 to $535 this year, up 32.7 per cent.

Over the same period an average block went from 730 square meters to 701.

In Ballarat, Redan was up 78 per cent going from $247 to $446 per square over the five years, Golden Point went up from $511 to $869 or 70 per cent, while Brown Hill rose 66 per cent from $363 up $604.

Meanwhile, Bannockburn in Golden Plains Shire jumped by 101 per cent, going from $355 to $711 per square meter.

“These figures make for great reading. The regional Victorian real estate sector has demonstrated long term growth and stability,” Ms Calnan said.

“In signs of an improving market, we are again seeing increasing demand from interstate and international purchasers’

“Regional Victoria experienced a larger drop in median land sizes than those in the city, but values have climbed.

“In Central Victoria, Huntly provides great value with a median price of $562 per metre squared; competing with neighbouring suburbs in Bendigo.”

“Darley near Bacchus Marsh in the western growth corridor, fell just short of also doubling its value, with a 99 per cent increase in median land value over the past five years.”