Equity in Land Value- Cobblebank

Even though you haven’t settled yet, have you been keeping an eye on the price of land in Melbourne’s growth suburbs? The value of Robinsons Rise keeps increasing with most lots having earned up to $100K in positive equity.

While home prices in many of Australia’s capital cities are now falling, the cost of vacant residential land is not.

Especially in Melbourne.

According to the latest Housing Industry Association’s (HIA) Residential Land Represidential land sales melbourneort, produced in conjunction with CoreLogic, the median price for vacant lots jumped by 7.4% during the March quarter of this year, leaving the increase on a year earlier at a mammoth 15%.       

Contributing to the sharp increase, the HIA estimates the number of lot sales nationally fell by 4.5% over the quarter, and by 28.4% over the year.

It’s little wonder prices continued to push higher, especially in Melbourne.

The report found the median lot price in Australia’s fastest growing capital city surged by 12.9% in the first three months of the year, leaving the increase over the past 12 months at a staggering 40.8%.

Victoria is in a “vulnerable position” and “playing catch up” after years of inadequate management of population growth, according to the UDIA’s Victorian chief.

The price of the average lot in Melton/Melton East increased almost 50 per cent to $234,000.

Melbourne is in a “strong yet precarious position,” with population growth underpinning the housing market and state economy, according to UDIA report.

According to PropertyValue,  the median house price in Rockbank has changed by a whopping 48.04% in the last 12 months. The same report showed a growing median house price trend for Cobblebank increasing from $560K in June 2017 to $606K in May 2018.

 

 

Top 10 annual growth suburbs of 2017 (Source: REIV)

  1. MELTON SOUTH up 44.1% to $420,500 median house price
  2. SUNSHINE WEST up 29.9% to $720,000
  3. GLENROY up 29.9% to $810,000
  4. THOMASTOWN up 29.1% to $688,000
  5. HOPPERS CROSSING up 28.3% to $580,000
  6. CRANBOURNE up 27.9% to $550,000
  7. FRANKSTON up 27.4% to $650,000
  8. LALOR up 27.1% to $699,000
  9. DEER PARK up 26.7% to $580,000
  10. MOUNT ELIZA up 26.3% to $1,232,500