Has your land increased in value in the last 6 mths?

I noticed on realestate.com that comparable blocks around us are selling for $10-$20k more than what we paid (last november). I don't think we got a bargain as we paid the market value at the time. I think that prices have simply gone up
A block 2 doors up from us recently sold as a resale for $10k more than we paid and it's smaller in size.
I just can't believe how the price of land is sky rocketing so quickly

The next stage after ours in our estate, blocks the same size are $60k more expensive that what we paid 4 months ago

Wow that's huge! Makes us feel glad that we bought when we did

Whilst I think if you're in a position where you want to sell your land this 'increase' may be a good thing, however, I would be reluctant to believe my land has increased significantly in value, in real terms.

This is based on my reservation that the influx of first home owners is still pushing up prices of houses and land in general. Coupled with a comment from a PD rep the other day who seemed genuinely amazed that the developer for land in a new release in the west of Melbourne had increased prices by $8,000 across the stage for no apparent reason in the past two weeks.

Seems like a lot of developers are simply bumping up prices as they know people have just that little bit more cash available to them at the moment.

I'm not normally the cynic, and I don't normally buy into the whole 'FHOG and FHOB inflating prices' debate, but I am a bit cynical when I watch the base price of the house we're saving so hard for, go up on average $5,500 every 6 months for the past year

I'm just happy we bought when we did. Dont think we could afford the new blocks now. The new stage I'm talking about Cal is the area between us and you guys in Eminence

Yes definitely not a good time for those who haven't bought yet.

It seems to cost a lot more to build from scratch now compared to in the past when it was always cheaper than buying established. I can't speak for all areas, but we just sold an established house for approx $30k under the replacement cost
I always thought it was the other way around but the RE tell me it's the price of land that's bumping everything up.

Its not much of a debate anymore, almost a certainty and not the first time its happened. People have what they would've normally paid, then just add the FHOG/FHOB on to it - and agents/developers know that and take advantage of it.

It will be interesting to see what happens once the grants go back. I still can't believe the rise in land value though over the past 6 to 12 months.

Yep Yep Yep...

Paid 180k and now the estate 2 mins up the road has simple small blocks for 255k

For a same size block we have over the road is on the market for 330k

Its insane im stoked we bought when we did...

We needed a little tree removal and earthworks but it still only cost us 5k so we are still well in front...

yes I think ours has gone up around 5% in 6mths which is about right. I think RE in general (I say loosely) goes up around 10% a year and doubles every 10yrs (now don't do the maths, it's just a generalisation!!)

As for the FHOG affecting values after the end of the grant, I don't think it will have any effect at all. The prices may stagnate for about 3mths, but then I believe it will continue to grow as usual. The simple reason is that many buyers (like me for instance) have owned land prior and just wanted to buy at the time we did and we did not even qualify for the grant.

Furthermore, many are waiting until the FHOG ends to then buy (believing, as many have felt on this forum) that after the end of the grant that prices will drop (eg investors - and even FHB's!!). That alone will ensure the prices stay the same. Maybe land will plato out for about 3-6mths (depending on availability in any given area) but that's about it. The only reason land would drop (IMO) is because people aren't buying (eg. job losses, dooming economy etc) and I don't think that will be the case next year at all.

Annie

Our land is 707m2 and we paid a deposit on it 2 years ago before the blocks were titled.
We paid for it in Feb 2008 when titles went thru (at original contract price given to us 6 months previously)

Blocks directly across the road from us are now selling as house/land packages or separate purchases - land is 348m2 ie half the size - and land is selling for almost double what we paid.

I know thats longer than 6 months but shows growth over 2 years.

Ours Has!!!! Our block is 750sqm flat land and cost us 290k.

A few blocks up the road that are 450sqm have now sold for 320k

Woo hooo. Im glad I bought when i did!!!

nope. ours has decreased because there aren't many buyers here. 2 more blocks have now sold where as before there were no buyers. but we aren't sorry we bought when we did as the only block we liked was this one. What we might have made up for in land costs we prob would have paid in build costs. We knew the land was over valued. Managed to knock him down 15K but felt this was still a good 10-15k over the value but now they are down slightly lower than what they were really worth 18 months ago when we bought.

I thought you might be talking about that release Erin. A family friend mentioned block prices there the other day and I didn't say anything but in my head I was like 'yikes, that's a bit steep'...

Good to see we've made a good selection in where to set up house

We bought ours in February for $150K, the estate released the same size block three months later for $170.

Not so impressive, but not too bad either

I'm not 100% sure if my land has increased in the last 6 months but similar blocks are increasing around the area with similar types of houses. My dad got the land in 2003 and a land price given by the council decreased the value of the land (excluding the dwelling) from 2003 to 2007 by 170k!!!!! Nearly 30% down. But its going back up now like all land.

I purchased a 700sqm block in Whittlesea for $142000 that was in March.

Now in the latest release a block of the same size is selling for $157000.

So in 4 months the block has gone up by $15000. I was quite shocked that there was such a rise in such a short period of time.

I don't think our land has increased a lot in value in the last six months, although it did increase quite a bit in the 6 months before that.

My best guess is that new land releases in the west of Melbourne made land more readily available.

Well I just got my valuation back today, and my block apparently hasn't increased in value since I bought it a year ago!!

From what the valuer said, blocks that were purchased after I bought mine were at inflated prices due to the FHOG and thus wouldn't increase the land value because of it. I think it's a crock, but you can't really do anything about it.

Oh yeah, the land is in Truganina.

We had a $27k price increase since November 08. Not too bad.. Each time the grants incrase the prices have increased.. I doubt they will go down tho.. Land pretty much sells out the day its put on sale in our estate.. the developer sees the only way is up.. why release more at once.. release it is small dribs and drabs and keep their profits up

I'm not sure..... it's very hard to compare on my estate as the blocks vary massively in size (400m2 up to multiple hectares) and vary massively in fall ( a couple of metres to 10 or 20m ). So there's not that much similar to compare.

But the block next door to mine is for sale for 30k more than they paid for it. I think they're dreaming though to be honest.
I don't think the blocks have gone up much at all. But we are not in a "booming estate" and that's how we like it.