Residential Land Bulletin

Residential Land Bulletin

JuneQuarter 2012

ISSN 1035 9168

Inside

Key land developmentindicators formetropolitanMelbourne by region - 2

Estates’ sales activityin growth area municipalities - 68

Overview

■ Lots in subdivision plans for the June 2012 quarter increased by 5%, the first upturn in figures since June 2011.

■ ABS dwelling approvals for Metropolitan Melbourne showed a marked increase of46% from the previous quarter, up to 10,762.

■The average vacant lot pricecontinued to fall to around $194,000 across the growth area councils in the March 2012 quarter (the latest data available). This is a fall of 5% from the December 2010 peak of $204,000.

7 quarter moving average

The seven quarter moving average analysis of the data is included in this publication to reduce the volatilityof the data which occurs from month to month.

Lots in subdivision plans: The seven quarter moving average of lots in subdivision dropped a further 5% from the previous average. Figure 2 shows that the seven quarter moving average for subdivisions has remainedhigh across Melbourne’s regions due to the strong figures in 2010 and is starting to taper off now.

Lots released: The seven quarter moving average for lots released continues to remain relatively stable andwas 7,496 (increasing slightly from the previous quarter). Figure 1shows that there continue to be more lots releasedin growth area municipalities than in established areas in the seven quarter moving averages and that thishas been the case since September 2009.

Dwelling approvals: The seven quarter moving average for dwelling approvals flattened again to 10,049(down 2% from the previous seven quarter moving average). This is despite the quarterly figure jumping by 46% since the last quarter.

Residential lots in subdivisionplans (see table 1)

■ There were a total of 38,784 lots insubdivision plans in the last four quarters.

■ Lots in subdivision plans for theJune 2012 quarter increased by 5%from the previous quarter with 8,277for the total Metropolitan area. Pleasenote that not all councils have submitted data, which will have impactedthe totals.

■ Lots in subdivision plans decreased slightly in the growth area councils in the June quarter and there was a slight increase in inner Melbourne.

Residential lots released(see table 3)

■ There were a total of 30,650 residentiallots released in subdivision plans in thelast four quarters.

■ Residential lots released increased by 13%in the Junequarter to a total of7,287 lots.

■ Residential lots released in thegrowth area municipalities accounted for 66% of all the residential lots released across metropolitan Melbourne in the June quarter.

Dwelling approvals(see table 4)

■ In the last four quarters there were 37,096dwelling approvals formetropolitan Melbourne.

■ The number of dwellingapprovals in the June 1012 was at 10,762 an increase of 46% on the March 2012 quarter.

■Dwelling approvals in inner Melbourne increased three-fold in the June 2012 quarter jumping from 1,072 in the March 2012 quarter to 3,552 in the June quarter.

Review of lots sold in growth area LGAs

Average lot size (m2) in growth area LGAs (see figure 4)

The average lot size declined in Wyndham, Hume and Cardinia for the March quarter (the latest data available) compared to theprevious December quarter. Lot size data is highly variable and often omitted from Valuer General data.However, in general, lot sizes in growth area estates show a gradual general decline from around2002 and this trend has continued over the last few years.

Price of vacant lots in growth area LGAs (see figure 6)

As reported in the previous bulletin the price of vacant lots in growth area councils declined in theMarch quarter after reaching a high $204,000 in the December2010 quarter. March 2012 saw the medianvacant lot pricedrop nearly 5%in the last year to around $194,000 across the growth area councils.

Glossary

Residential lots are parcels of land intended forhousing development. In fringe areas there wouldgenerally (but not in all cases) be one dwellingbuilt on each lot. In established areas residentiallots may be parcels of land created by subdividinglarger properties or redeveloping land from otheruses, often for multi-purpose construction. Whiletechnically still defined as residential lots, the lattermay more usefully be considered as dwelling units.

Only metropolitan Melbourne is included.

Residential lots in subdivision plans: Councilsprovide the number of residential lots which weresubmitted to them in subdivision plans where aplanning permit is required for subdivision.

Certification of residential lots: Councils provide thenumber of residential lots for which certification hasbeen given. Certification is given when a plan complieswith the conditions of the planning permit or planningscheme provisions.

Residential lots released: Councils provide thenumber of lots which have been completed to thesatisfaction of the Council and have been issuedwith a Statement of Compliance. At this point thesubdivision requirements have been satisfied forroadworks, drainage, water supply and any otherconstruction.

Dwelling approvals: The Australian Bureau ofStatistics provide the number of “houses” and “otherresidential” dwellings approved for each municipality.

Note: Totals in Tables 1–3 exclude municipalitieswhere data was not available.

Published by Spatial Analysisand Research, a branch in theDepartment of Planning andCommunity Development, 1 Spring Street MelbourneVictoria 3000

Telephone (03) 9208 3000

June 2012

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Authorised by the VictorianGovernment, Melbourne

29 Yorkshire Street, Richmond

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Editor: Jonathon Stewart

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Internet: research/urbanandregional