Larger landholdings perform better in current downturn: CoreLogic

Perth has more land estates now than during the mining boom.
Perth has more land estates now than during the mining boom.

WHILE developers are releasing smaller blocks to address affordability and infill targets, it seems land is still in demand.

According to CoreLogic suburbs with larger than average land sizes are holding up better in Australia’s housing downturn.

Cameron Kusher said one thing that was immediately noticeable from the data was the annual change across these suburbs (for houses) was typically superior to that across the broader capital cities.

“Perth house values are 6.7 per cent lower over the past year with four of the five suburbs listed recording either value increases or more moderate declines than -6.7 per cent,” he said.

Mr Kusher said the data also highlighted that many buyers value larger land sizes.

“As new development increasingly moves toward higher densities and smaller lot sizes for houses, large housing lots are likely to continue to be highly desirable,” he said.

“The desirability won’t just come from more space but also in some instances they will be desirable because of the potential for sub-division in the future.”

See the results for all states here.