Location Vs Land Size

The age old debate between the size of the land a property is situated on and the location of that land to popular and essential amenities in Melbourne. Recent analysis of RP Data property information compares the median sale price and the average land area to calculate the value per square metre of houses in Melbourne’s million dollar suburbs.

The results are not all that surprising, location is far more important, let’s take a look:

Toorak is still the city’s most expensive suburb for houses with a median house price of just over $2.6M. The average size of a block however is rather large when comparing to other million dollar Melbourne suburbs and sitting pretty at 823 square metres and at a cost $3187 per square metre. Although Toorak may be the most expensive suburb in Melbourne for its median sale price (house) its average price per square metre this is lower than the $6,274 in Albert Park and $6,074 in Middle Park.

So does land size matter?

A review of the change in house values on a suburban basis shows that the largest increase over the last year was found mainly in inner city suburbs. Middle Park, Hawthorn East, Braybrook, Balwyn North and Prahran comprised the top five with changes in median value of between 43.2% and 24%. For apartments the top five included Caulfield East, Middle Park, Canterbury, Flemington and Spotswood.

The average time on market for houses sold last month rose sharply from 35 to 40 days despite average discounting being stable at -5.3% over the previous week.

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