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The price of land across Victoria has rocketed over the past five years, with land soaring by nearly 60 per cent in value in outer Melbourne.
The Real Estate Institute of Victoria (REIV) has analysed land values over the last five years, and although property prices are stronger, the median property size has dropped.
Regional Victoria saw values rise by nearly 33 per cent, but the median property size fell by 4 per cent.
Likewise, metro areas saw values increase by 42 per cent, but the median size fell by 3.6 per cent.
Inner Melbourne was the only area where the median size remained unchanged, but the median price increased by 36 per cent.
Although prices are strong, the number of sales is down.
Sales in metro areas are down by 37 per cent from 2014, but only down by 2 per cent in regional areas.
Melbourne was walloped, with the inner city seeing more than half as many sales compared to five years ago. Sales were down by 38 per cent in middle Melbourne and a quarter in outer Melbourne.
Although sales volumes have fallen, there continues to be strong demand in the Victorian capital, REIV president Leah Calnan said.
“Melbourne’s outer growth south-eastern and western suburbs are some of the fastest-growing parts of Australia,” Ms Calnan said.
Seventeen suburbs across the city have seen their land value more than double since 2014, she said.
“Victorian property is a growth asset; anybody who bought into the market five years ago would see 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 metre squared.”
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