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Victorian land prices surge by up to $1 million

Victorian land values have exploded since 2020, with a number of areas seeing prices rise almost $1 million.

According to Open Lot, Sorrento in Victoria has been one of the biggest winners, with the median price of land surging by a staggering $960,000, rising from $790,000 in 2019 to $1.75 million in 2022.

With the coastal paradise attracting plenty of buyers seeking premium living experiences since the onset of Covid.

Blairgowrie was also another standout, with an increase of $831,500. 

Climbing from $577,500 in 2019 to $1,409,000 in 2022, Blairgowrie’s appeal lies in its picturesque coastal charm and proximity to urban centres. 

While Yarraville, which is positioned for urban convenience, has experienced a substantial increase of $723,500, with median land prices rising from $510,500 in 2019 to $1,234,000 in 2022.

Other locations that have also seen a sharp rise in land values include Safety Beach, with an increase of $640,000, Mount Martha, which increased $512,500, Altona North, which increased $495,000 and Point Lonsdale, which increased $466,500.

Open Lot Founder and Chief Executive Officer Qi Chen said most of the big gainers are in popular locations.

“Most of the suburbs with the most significant median land price increase are located in desirable seaside locations, which is likely one of the reasons for their high land prices,” Mr Chen said.

“Other factors that may have contributed to the price increases include the increasing popularity of working from home, which has made these suburbs more attractive to buyers who are looking for a relaxed lifestyle.”

While there have been substantial price increases since the start of COVID, there are some locations where land values have gone backwards.

Eltham saw a decrease in median land prices by $337,500, falling from $950,000 in 2019 to $612,500 in 2022.

Cairnlea also saw a decrease of $312,500 in median land prices, dropping from $642,500 in 2019 to $330,000 in 2022.

While Grovedale experienced a decrease of $122,500 in median land prices, from $322,500 in 2019 to $200,000 in 2022.

Mr Chen said suburbs with the most significant median land price decrease were located in more affordable areas, which may have made them more vulnerable to price decreases during the pandemic. 

‘Other factors that may have contributed to the price decreases include the rising cost of living and the increasing availability of work-from-home opportunities, which has made people less willing to pay a premium for a close commute,” he said.

Mr Chen said while some suburbs saw good growth, others faced challenges in their property markets. 

“These fluctuations emphasise the importance of staying informed and adaptable in a shifting real estate landscape,” he said.

“The stories of these suburbs offer valuable insights for both investors and homeowners looking to navigate the factors that influence suburban property values.”

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.