I recently had a good laugh about a blog I wrote back in 2017 where I was talking about land prices in the Northwest sector. I’ve provided a snippet below.

“Thought I would share some interesting information on what’s going on in the North West sector in Sydney. We have seen extremely strong sales in this area for a number of years now and the price points between land in the Baulkham Hills council and Blacktown council has always been quite different…….up until now. A quick look on REA or Domain will tell you the price of land is getting ever closer in these two councils. Whilst areas such as Box Hill has enjoyed strong growth over the last 12-18 months, its the land in areas such as Schofields and Riverstone that have sky rocketed in price to the point that acquiring a block in these areas is becoming more and more difficult for the first home buyer. Smaller lot sizes are helping to keep the prices reasonably affordable but they also demand a premium “per square metre” price due to their popularity. Prices for smaller lots of land in Riverstone greenfields estates is approximately $1300-$1350 per square metre whilst Box Hill is currently over the $1400 per square metre BUT there is currently no sign of the Riverstone land prices slowing down.”

🙂 Hilariously back then we thought $1300-$1400 per square metre for land was extortionate. If only we could pickup a 300sqm lot at those prices today. Needless to say those days are long gone. For those not currently up to speed let me provide some context. In Box Hill within the same development:

• In late 2017 a typical 300sqm lot would have cost you $420,000.00 (give or take).
• In January of 2023 a typical 304sqm lot was $915,000.00
• As of August 2023 a 300sqm lot is $779,000.00
• At its highest price point that’s over 116% increase…………in only six years!

Thankfully, with land sales slowing due to interest rates, land pricing has come back to a more “acceptable” level. So I hear you ask what’s stopping land prices from surging again once rates start coming down. Short answer is NOTHING. Other than bank valuations there is nothing stopping developers charging what they want. As long as they are competitive within the current market, the skys the limit. Makes me wonder what we will be paying in 2029:)

Cheers

Scott