By Robert Larocca

Does land size matter? RP Data Melbourne Blog

The impact of land size on the value of and demand for a property is an interesting question. Analysis of RP Data information comparing the sale price with the land area shows that location is still more important than size when comparing suburbs.

After all, a block of land that is twice the size and twice the distance from the amenities you desire is not likely to be as appealing as a well-located smaller one.

The value per square metre of houses in Melbourne’s million dollar suburbs demonstrates this.

Toorak is the city’s most expensive suburb for houses with a median sale price over the last year of $2.622m. The average block size is however quite large at 8232m which translates to a cost of $3,187 per sqm. Interestingly, this is lower than the $6,274 in Albert Park and $6,074 in Middle Park and the median sale price is less than half that of Toorak

These two neighbouring suburbs have, compared to Toorak, very expensive land but this is more a factor of the small block sizes, at 2092m and 2592m respectively.

At the other end of the spectrum is Ivanhoe East, a highly sought after suburb with a median sale price of $1.15m; it has slightly larger blocks than Toorak at an average of 9692m, again highlighting that location is the most critical factor.

Robert Larocca
RP Data Victoria Housing Market Specialist

Source: RPD

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