MELBOURNE RESIDENTIAL LAND VALUES SOAR IN FIVE YEARS: REIV
Land values have skyrocketed in pockets of Melbourne in recent years — despite average block sizes shrinking. Find out where homeowners have made the biggest gains from their land.
Many homeowners across Melbourne are sitting on real estate goldmines, with land values skyrocketing in pockets of the city in recent years.
This was despite average block sizes shrinking, the Real Estate Institute of Victoria found.
Property prices per sqm have more than doubled in 17 of the city’s postcodes over the past five years, 13 of which are the outer ring.
Tyabb — about an hour’s drive southeast of the CBD — led the way, with land values jumping 420 per cent since 2014 to a median of $810 per sqm.
The REIV also recorded huge rises in fringe suburbs Eumemmerring (up 244 per cent to $1623 per sqm), Bittern (239 per cent to $742), Crib Point (152 per cent to $944) and comedian Ross Noble’s former home of St Andrews (189 per cent to $176).
Rounding out the big outer-ring movers were Bunyip, Seville, Red Hill, Kinglake West, Diggers Rest, Croydon, Cranbourne North and Chirnside Park — all notching land value gains of more than 106 per cent in the period.
Closer to the CBD, values doubled in Brooklyn (up 148 per cent to a median of $1892 per sqm), Glenroy (126 per cent to $1790), Essendon West (125 per cent to $2573) and Briar Hill (101 per cent to $1606).
REIV president Leah Calnan said Melbourne’s outer-southeastern and western suburbs were “some of the fastest-growing parts of Australia”.
“Victorian property is a growth asset — anybody who bought into the market five years ago would see an amazing return,” she said.
This 720sq m property at 633 Geelong Rd, Brooklyn is on the market for $775,000-$850,000.Source:Supplied
OBrien Somerville agent Shelly Brown said Tyabb and surrounds were luring family buyers with affordable home prices, larger blocks and lifestyle perks, being “at the fingertips of everything the Mornington Peninsula has to offer”.
“It’s also close to wineries, and has easy access to freeways to get into the CBD,” she said.
“We used to sell properties largely to people within a 10km radius. But since the Peninsula Link has come in, it’s put Tyabb, Somerville and surrounding areas on the map.”
Land values in metropolitan Melbourne as a whole have increased 41.8 per cent since 2014, hitting a median of $1448 per sqm.
In the same period, the typical block size has shrunk from 607sq m to 585sq m.
Outer Melbourne has seen the biggest decline in land size over the past five years, falling from 660sq m to 600sq m.
Melbourne land value growth
CITYWIDE:
-land value up 41.8% since 2014 to $1448 per sqm
-block sizes down 2.6% since 2014 to 585sq m
INNER RING
Essendon West: 125%, $2573
Parkville: 86%, $7885
Deepdene: 78%, $4782
Maidstone: 67%, $2296
Yarraville: 66%, $3596
MIDDLE RING
Brooklyn: 148%, $1892
Glenroy: 126%, $1790
Briar Hill: 101%, $1606
Airport West: 93%, $1920
Clayton: 87%, $2075
OUTER RING
Tyabb: 420%, $810
Eumemmerring: 244%, $1623
Bittern: 239%, $742
St Andrews: 189%, $176
Crib Point: 152%, $944
Source: REIV
Originally published as Melbourne’s property goldmines revealed
Samantha Landy.