A new Melbourne housing lot in the outer suburbs is taking less than 50 days to sell – down from 200 days in 2013 – as demand outstrips supply and prices surge.
The figures, from real estate group Oliver Hume, follow the Urban Development Institute’s State of the Land Report finding that there was just one month’s worth of trading stock in Melbourne heading into 2017, despite a record 22,700 lots released last year.
Oliver Hume research manager George Bougias said the total number of sales across January, February and March were all significantly up on the same period last year.
“Continuing supply, robust competition and relative affordability compared to many other property markets in Australia means Melbourne residential land is still one of the strongest performing asset classes in Australia at the moment,” he said.
According to Oliver Hume, the median price of land in metropolitan Melbourne reached $262,000 in the first quarter of 2017 up 9.6 per cent (or $23,000) from $239,000 in the last quarter of 2016. Over the same period the median lot size declined from 416 square metres to 410 sq m.
This figures are similar to those recorded by project marketers Red23, which said prices reached $267,000 at the end of April and could reach $300,000 by the third quarter of the year if the current rate of growth – $9000 a month – persisted.
Oliver Hume director Paul Ciprian said land was attracting a wide variety of buyers including first home buyers, investors and value hunters from Sydney.
“Over the last couple of years we have seen an ever-increasing number of people priced out of the Sydney market looking to set up their life in Melbourne. If your job and family is transferable, the decision is pretty simple,” Mr Ciprian said.