Published 2 September 2018
Residential land in & around Melbourne took an average 24 days after hitting the market to find a buyer in the first quarter of this year, residential marketing company Oliver Hume said in its latest research, out on Friday.
By comparison, 5 years ago it took about 6 months, and the timeframe got down to 21 days in the second half of last year.
Oliver Hume measures the period from when land is released for sale by a developer until it’s contracted by a buyer.
The company said the median lot price in Melbourne’s key growth areas had risen by 4.7% ($A14,000) [prices not stated, but I calculate movement was from an average $A295,000 to $A309,000] just in the first quarter of this year, but appeared to have slowed since then. Meanwhile, sections were getting smaller, down from an average 406m² in December to 400m² in March.
But as the country’s city & total populations hit new marks, CoreLogic & the Housing Research Association say in their latest research, out on Friday, the population growth appeared to be easing, and residential land prices appeared to have peaked late last year.
In Sydney, they said, “typical” residential development land prices peaked at $A479,000/lot last September and fell to $A467,500 in the March quarter.
In Melbourne, the price of a “typical” lot reached a new high of $A359,000 in the March quarter. CoreLogic said that was up 29.3% from a year earlier.
One obvious cause is population growth. According to the Australian Bureau of Statistics, Melbourne’s population climbed from 4 to 5 million in 8 years, reaching the 5 million mark yesterday.
According to the official research, Sydney is still ahead, at about 5.2 million, although research by the independent Population Australia has it above 5.6 million.
Australia’s population has risen by 1 million in 31 months to 25 million, reaching that mark on 7 August.
Oliver Hume, 31 August 2018: Melbourne and market robust but price growth slowing
Housing Industry Association
Attribution: Oliver Hume release, Australian Bureau of Statistics, Population Australia, Housing Industry Australia.