Land prices skyrocket in Melbourne
Recent analysis by the REIV has found that Melbourne land values have climbed significantly over the past five years, particularly in the outskirts of the city.
According to REIV president Leah Calnan, research conducted by the body found that the outer Melbourne has recorded a 59.1 per cent boost in land values over the past five years, with the median price per square metre selling for $1,116 on average this year.
Metro and Middle Melbourne have also seen land values skyrocket, both recording a 41.8 per cent jump over the past five years.
Meanwhile, Inner Melbourne has seen land values climb by 36.1 per cent over the past five years, while regional Melbourne has seen them increase by 32.7 per cent over the same time period.
“Melbourne’s outer south-eastern and western suburbs are some of the fastest-growing parts of Australia,” Ms Calnan said.
“Seventeen suburbs across Melbourne 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 see an amazing return.”
Ms Calnan said that while real estate commentary often focuses on clearance rates, “it’s important to look at how the long-term market is trending”.
“These figures make for great reading; the Victorian real estate sector has demonstrated long-term growth and stability,” she added.
“In signs of an improving market, we are again seeing increasing demand from interstate and international purchasers.
“…Location is always important, Middle Melbourne suburbs near the city like Essendon West and Glenroy recorded 125 per cent growth.”
“In the west, Brooklyn provides great value with a median price of $1,892 per metre squared, competing with neighbouring Footscray or Maidstone.”
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