Vacant land prices reveal suburban divide in the southeast
A new report has revealed a gulf in vacant land prices between Cranbourne North and East. But if you’re looking for a bargain, this waterfront suburb, where empty lot prices dropped 72 per cent in three months, may be worth a look.
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The latest vacant land prices and sales have revealed a tale of two Cranbournes.
On the one hand, the median price for a lot in Cranbourne North shot up 41 per cent — from $308,500 to $435,000 — in one year.
During that same period the Cranbourne East median dropped 10.2 per cent — from $352,000 to $316,000, the latest data reveals.
The Victorian Property Sales Report for the December quarter also showed a rise in empty land median prices by more than 30 per cent in Lyndhurst, Berwick and Narre Warren South.
Ray White Cranbourne sales development manager Russell Muir said there had been a “glut” of supply in Cranbourne East and less demand for the area.
“There were about half a dozen developers releasing land there, whereas in Cranbourne North the new land release had been held off for a long time and it’s one of those highly sought-after pockets,” he said.
Realestate.com.au listings show a 375sq m lots in Cranbourne East up for $280,000 — $300,000 while same sized plots in the north are listed for more than $369,000.
Being closer to Berwick, with access to more infrastructure and train stations also made the north a more attractive prospect with people willing to pay higher prices, Mr Muir said.
Safety Beach could be the place to snap up a bargain, with the median price dropping 72 per cent when compared with the previous quarter.
The median was $607,500 for July-September 2018 for the suburb and sank to $167,500 in October-December.
But there were only four sales settled during the period and the drop could be due to sales of marina berth lots, which classify as land, in the waterfront area.
Mr Muir said vacant land sale prices could also be skewed or inflated depending on the number of sales, the size of lots for sale and the amount of land released during any given quarter.
As the data related to settled sales and settlements could take up to 120 days, some sales made during this period may not be reported until the January-March 2019 quarter.
Real Estate Institute of Victoria vice president Leah Calnan said suburbs with the highest growth in median prices were those in the outer suburbs of Melbourne and consistent with what the institute had seen the property market.
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“Melbourne has seen the highest growth in vacant prices, on a per square metre basis, compared to other capital cities,” she said.
“It shows that despite the doom and gloom, Victorians are still prepared to invest in pursuing the great Australian dream of home ownership.”
“Victorians interested in purchasing vacant land should ensure they are aware of council guidelines around subdivision, be aware of what the property may have been used for previously and hence whether they will be required to perform remediation work and importantly consider the location.”