There appears to be an increased buyers' appetite for land in the Australian Capital Territory (ACT), according to a report from Herron Todd White.
Sandra Howells, property valuer at HTW, said the limited supply of land and the increasing number of buyers are resulting in a boost in land prices. Buyers who are planning to buy a vacant block in a new ACT subdivision should expect to pay around $300,000 to $500,000, depending on the location.
"With this being said, there appears to be a high quantity of supply in the pipeline as new sections of Taylor, Strathnairn and Whitlam near completion over the next six to 12 months, possibly stabilising the supply and demand," she said.
Howell said since the ACT started its Mr Fluffy Buyback program in 2014, there have been plenty of opportunities to buy vacant land in established suburbs. Prices for vacant land in these suburbs range from $580,000 to $900,000. However, there are locations, particularly prestige ones, where prices can go over $1m for land.
"Many of the blocks allowed for dual occupancy development, resulting in a market made up of builders, developers, owner-occupiers, and investors. This will be one of the final opportunities to purchase a vacant block in an established suburb as standard vacant land sales in established areas are rare," Howell said.
The ACT property market, Howell believes, seems to have been "almost totally unaffected by COVID-19" and is going against doomsday predictions.
In a previous report, Howell said Canberra has strong market fundamentals that include low unemployment, above-average annual incomes, and a strong government and public sector employment base.
"Many agents saying that the housing market is characteristically similar to 2016 when demand was high and supply was low. The short to medium term outlook is bullish and the long term is also promising," she said.
