The average size of plots across Melbourne has been compressed to new lows as record sales forced property companies to cut plot sizes or raise prices, according to realEstate.
RPM Real Estate's latest Greenfield Market Report shows that a record 7,835 plots of land were sold in the September quarter. Although experts believe that about 7,700 pieces of land were sold in the three months to June 30, the boom will slow.
The median land price in Melbourne has risen to $326,000, close to its previous peak of $329,000.
(Image source: Internet)
However, Luke Kelly, general manager of RPM project marketing, said the average plot size had dropped from about 400 flats at the time to 383 flats. Among them, melbourne's southeast district has the smallest plot, where the plot area is generally only 375 square meters.
The median land price in Casey and Cardinia is also the highest, at $368,000. As a sign of demand, RPM reported that as of the end of September, the number of plots for sale in the Southeast Growth Corridor was just 552, down from 1,300 in the same period last year.
(Image source: RealEstate)
Kelly said the standard price in the South East was approaching $1,000 per square metre, a price that was "uncharted territory". Developers cut plot sizes to keep prices affordable, resulting in smaller homes.
Developer Pask will issue a batch of 167-203 square metre townhouse plots on its Rowville-based Bankside property project next February, with a range of buyers in recent high demand for smaller plots.
Since its launch during the lockdown earlier this year, the property's main group of buyers has been buyers aged 41-55, followed by 33-40 years old, suggesting that small plots of land are not just favored by first-time buyers.
Lauren Catalano, Sales and Marketing Manager at Pask, said: "It's not just an affordability consideration, it's a way of life. ”
Upon completion of the Bankside development, there will be approximately 800 residences, all set within a vast landscape.
The Bankside project will launch a Phase 3A sale on November 26, with plot sizes ranging from 298-571 flats and prices starting from $521,000.