August 2021 - Land Prices

We’ve had a bit of a run of somewhat interesting land sales lately; so I thought it would be a good time to give our readers a little update on what land pricing is doing - mainly in already established areas as opposed to new estates

Date:

22-Sep-2021

Category:

Ecology

Tags:

Author:

Matthew De Maid

August 2021 - Land Prices

We’ve had a bit of a run of somewhat interesting land sales lately; so I thought it would be a good time to give our readers a little update on what land pricing is doing - mainly in already established areas as opposed to new estates

Give me land, lots of land - well… a few blocks of land, in good locations.

We’ve had a bit of a run of somewhat interesting land sales lately; so I thought it would be a good time to give our readers a little update on what land pricing is doing - mainly in already established areas as opposed to new estates, which are a little easier to keep up, given the higher volumes of availability.

Land in established locations is generally always in relatively short supply and that’s one of the reasons that makes it so desirable… simply supply & demand. The other reason why buyers generally like vacant land in established locations is because they already know what the quality of surrounding homes will be, not to mention the quality of other conveniences like shopping, parks and schooling.

We’ve had five of these types of land allotments sell in fairly recent times over the last couple of months, so I’ll provide a little overview on each - just so you can see what pricing is doing.

1. Vacant Land at 71 MacKenzie Street & 2 Alford Street in Mount Lofty:-

Original house on two lots totalling 1,558m2, sold at Auction for $605,000 in July 2017. The house was then removed, leaving the two lots of approximately 775m2 each. One allotment then sold to a buyer for $413,000 who ultimately decided not to proceed with a duplex build; which is when one of my clients purchased that block for $415,000 and the block next door for $385,000 in September 2019. Fast forward to most recent times, we’ve recently sold these two lots again for $480,000 & $485,000 respectively. An increase of 15% and just under 26% in two years.

2. Vacant land at 3 & 3a New Street, Mount Lofty

Original House on two lots totalling 1,710m2, sold off market for $545,000 in April 2021. The house was then removed - leaving two allotments of approximately 850m2 each with 11.5m & 12.5m frontages. One side boundary fence was then replaced and the two allotments were resurveyed. Fast forward (just a little bit) to today and those two blocks have recently sold for $385,000 & $400,000.

3. Vacant land at 25-31 Kara View Court, Rangeville

This one is a ‘longer term’ case study which I thought you might find interesting. This street is arguably one of the best in Toowoomba when it comes to significant ‘modern’ construction homes. It also boasts some of the most impressive outlooks to Tabletop Mountain and the eastern escarpment in the Toowoomba area. Overall, it’s a street the buyers know that they’re surrounded by quality property and they take comfort in that. This block originally sold by the developer in October 2001 for $200,000. It was then purchased by another party in September 2002 for $217,000 - this buyer held the block until just recently. In the 19 years that followed, obviously prices have increased and the street is established now, with large sale prices for both houses & other blocks of land. This block, on the top side of the street and with a perfect north-east aspect looking directly towards Tabletop Mountain is, I think among the best in the street, if not the best in the street. Fast forward to today and this block has recently settled for $1,300,000.

I quite enjoy looking at some of these price movements and considering the impact that changes land prices will have on neighbouring properties. This, coupled with the complexity currently surrounding the building industry, keeps things looking good for established houses. But looking at the above sales, the appetite for building obviously hasn’t subsided either.

- Matt