Narrow block of land with footpath down the middle for sale for $400,000
A block of land for sale with a footpath smack down the middle — and just 4.6 metres wide — is a sign something isn’t quite right in Australia.
A narrow block of land with a footpath smack down the middle has hit the market for $400,000.
The land, situated at 27 Leslie Crescent in West Caloundra, Queensland, is just 4.6 metres wide and 129 metes square.
The property, apparently suitable for a very compact terrace, is 100m walk to the recently completed local shopping precinct with cafes, bars and a public school.
“[It is] Stockland‘s responsibility to restore the block to a vacant condition after the end of the lease,” the listing says.
“The new owner will get a healthy return during the planning stage of their brand new home.”
However, the lease, which includes the footpath, still has more than six months before it expires.
“First home buyers and savvy investors will see the value in an entry level priced land within a very fast growing area,” the listing continues.
“Secure this land and plan for the future before Sunshine Coast prices get even further out of reach.”
The fact that such a narrow piece of land can command a huge price is indicative something might be up with Australia’s housing market.
It comes as house prices across the state continue to soar, with the cost of property on the Sunshine Coast increasing by 33.7 per cent, and 31.9 per cent in the Gold Coast in the last year alone.
Despite initial reports Australia’s housing prices have eased for 2022, recent CoreLogic data claims national home values rose 0.7 per cent in March.
Momentum in Australia’s property market has significantly slowed in 2022 with the fear of rising interest rates plaguing it, according to PropTrack economist Paul Ryan.
“Those boom conditions seem like they have passed. While housing prices are still going up, it’s at a slower rate and whether prices increase or fall significantly is a question around interest rates and when and how quickly the RBA will increase rates,” he told news.com.au.
“I think part of that is prices have caught up to the reduction in borrowing and we have already seen interest rates start to drift higher, especially with fixed rates, and we are already anticipating borrowing costs increasing when the RBA potentially increases rates later this year,” he explained.
The marginal increase in prices across the country in March was the slowest pace since May 2020, after national pandemic lockdowns.
In a slight respite for buyers, property prices will not be as strong this year though, particularly given the extraordinary highs they reached in the last two years, Ryan claims.
“I think price growth is likely to continue to slow and I think their may be some falls across the country, for example we saw housing prices fall in Melbourne in March and it’s the first fall we have seen in Melbourne this year,” Ryan said.
“We are likely to continue to see weakness in the property market as we see price falls in Western Australia and the NT already and those places are likely to continue to be weak, but overall it comes down to when and how quickly interest rates are going to increase.”