Lot prices have continued to rise and median land sizes reached new lows in the Footscray and Laverton areas, a recent report has revealed.
Compiled by RPM Group, the data highlighted Melbourne’s greenfield property sector performance for the first quarter of 2022 [January to March].
According to the report, areas in the western growth corridor, including Footscray and Laverton, had an 8.1 per cent median lot price increase to $359,000, with the lowest land size totalling 356 square meters.
To make the most of lot size decreases, RPM Group project marketing managing director Luke Kelly said most owners were turning to more innovative methods.
“If there’s smaller lots on the market and that’s all I can get, what do I need to do? I’m gonna go double storey rather than single storey. So I can pick up a smaller lot and still get a big house on it,” he said.
“You can still get a big house on it, it’s a little more expensive than building a single storey but it outweighs and balances it up because you’re taking a smaller lot by not spending as much on a bigger block, you can spend a little bit more on your house.”
Mr Kelly said the amenities and infrastructure in the west was a prime reason the western corridor continued to dominate sales in growth areas, recording 43 per cent of total sales.
“There’s been a great focus on government and local councils…to get things going,” he said.
“Because the infrastructure is continuing to grow, they’ve given great amenity in new areas that perhaps they haven’t had in the past, it’s become a good and attractive place to live.”
The data also suggested more people were foregoing renting and opting to purchase a house instead.
Mr Kelly said this choice was more “cost effective”.
“You had the opportunity to save a deposit, which a lot of people have over the last two years because they’ve been saving money with COVID,” he said.
“If you’re renting and you rent around $20,000 a year, why not have mortgages worth $20,000 a year and have an asset.”
