🏠 House & Land vs Established House: What’s the data telling us? There’s a lot of talk in the industry about the established market outperforming house and land. In a tough market, established homes are often viewed as a safer option for buyers because they can be occupied right away without the worry of construction costs and potential delays. There are also clear advantages when purchasing house and land. Buyers are able to customise the home to their needs and achieve a higher energy rating with lower running and maintenance costs. With affordability a key priority, what do the numbers tell us? ➤ The average cost of a house build in Victoria is $327,475. ➤ The total house and land price in the greenfields areas can start from $715,811 in an affordable suburb such as Beveridge and reach almost $870,000 in more expensive suburbs such as Greenvale and Botanic Ridge. ➤ With the land component of the total cost averaging between 50 per cent and 62 per cent, Mitchell Shire is the most affordable with the Casey and Cardinia Shire having the most expensive median land price. ➤ In areas like Mitchell, the cost of house and land is below the median house price with a price difference of $28,411. In most municipalities, the cost of house and land is higher than the median house price. But we’re not comparing apples with apples. You do need to look at the type of established homes in the suburb. Case in point – Hume. In Greenvale, it’s more affordable to build a home because it has a higher median house price due to its location and the quality of homes. In Sunbury, it’s more affordable to buy an established home because the homes are dated and tend to be smaller. At Red23, we’re continuing to focus on residential land development while expanding our focus on apartments and townhouses to leverage every market opportunity. See table of cost of house and land vs unit price vs house price in comments 👇
Red23
2mo
Sasha Bursac
2mo
Nothing like a smell of a new home....
nick muni
2mo
Very Wise Words Indeed
