21 February 2015: Sydney’s median residential land price increased by 19.7 percent over 2014 and the city clearly remains the most expensive of all the state capitals, according to data from the Domain Group.
The December quarter median land price of $390,000 was well ahead of Melbourne at $245,000 and Brisbane $237,950.
Dr Andrew Wilson, Senior Economist, Domain Group, commented; “Sydney’s annual land prices increased at the fastest rate in over a decade and recorded stronger growth than the booming house prices which increased by 14% over the same period.”
Sydney’s outer suburban residential land market recorded strong growth over 2014. Prices in the south-west increased by 25 percent to a median of $350,000 while prices in the west rose by 8.3 percent to a median of $410,500.
The median residential land size sold in the west over the six months ending December was 564 square metres at $759 per square metre. In the south-west, the median land size sold was 500 square metres at $652 per square metre.
The most popular outer west suburbs for land sales over the six months ending December 2014 were Riverstone, Colebee, Pitt Town, Kellyville and Glenmore Park.
The most popular outer south west suburbs for land sales were Harrington Park, Campbelltown, Moorebank, Appin and Edmondson Park.
Kellyville recorded the highest median land price over the second half of 2014 at $643,000 with a median land size of 701 square metres at $912 per square metre. Land prices in Kellyville increased strongly by 38.2 percent over 2014.
Dr Wilson continued; “With Sydney residential land prices now rising faster than booming house prices, the task for first home buyers is becoming increasingly difficult.
“Despite recent changes to the NSW First Home Buyer’s Grant which provides a $15,000 subsidy for first home buyers purchasing a new property, the rate of growth of outer suburban land prices is continuing to push the great Australian dream out of the reach of entry-level buyers.
“Furthermore, the First Home Buyers grant will reduce to $10,000 from January 2016, when based on current trends, outer suburban median land prices will have increased by at least another $40,000.
“The first home buyer market share in Sydney is set to remain around the current near-record lows until chronic undersupply of residential development land in Sydney is effectively addressed.”