MyRPData Calls for Smaller Lots in Capital Cities to Push Housing Affordability as House Prices Rise Due to Rate Cuts
Recent interest rate cuts from the Reserve Bank of Australia may have fueled renewed confidence in the housing market, but it has also contributed to the increase in house prices. Property tracker MyRPData compares median land values in capital cities and pushes for smaller lots to improve housing affordability.
Sydney, Australia (PRWEB) January 17, 2013
House prices increased by 1.4 percent last month with Adelaide posting the highest price gain at 2.4 percent as the Reserve Bank of Australia (RBA) introduced interest rate cuts to the market. Leading property resource, MyRPData, recommends a solution to combat the recent property increases. MyRPData recently looked at the median land values in capital cities to determine which cities hold the most expensive lands and concluded that housing affordability could be improved by starting at the development phase.
According to MyRPData's property information blog, RPData.com, based on a rate per square meter, Perth tops the list of expensive land values with Sydney and Adelaide coming in second and third, respectively. Sydney may be the most expensive land in the housing market today with a typical block of land selling for $283,500, an amount based on sales over the past 12 months. But the MyRPData report shows that Perth actually holds the most expensive vacant land with $555 per square meter in comparison to Sydney's $547 per square meter.
Research director Tim Lawless writes on RPData.com, “The difference really comes down to the size of the blocks being sold. The median land area for vacant land sales in Adelaide is the smallest of any capital city at just 375 sqm. So, despite being the most affordable mainland capital city based on median prices, on a rate per square meter basis, Adelaide land is actually relatively expensive.”
Shrinking lots, MyRPData says, can improve housing affordability as well as maximise development yield: smaller lots mean more houses in one development. MyRPData concludes that reducing lot sizes not only contributes to making properties more affordable to more buyers, but it should also pave the way for developing more parks and recreational facilities. While the leading property resource recognises the limitation that council zoning and town planning regulations have on land area, it still maintains that cutting lot sizes can create a compelling effect on keeping property prices relatively inexpensive.
Lawless suggests, “Smaller lots and smarter housing design are fairly straightforward mechanism to combat housing affordability and to improve density around primary working nodes and transport corridors. The trend towards smaller lots is evident across all of the capital cities but not to the same extent as what small lot housing has been embraced in Adelaide.”
MyRPData's recommendation may be directed more to real estate developers, but first-time homebuyers can still obtain invaluable insider tips on locating affordable real estate prices Through RPData.com, homebuyers can find out which suburbs service the most affordable loans, which suburbs fit lifestyle and budget needs, and which regions currently have the most affordable rent prices.
For more updates on Australia's real estate market and comprehensive property data, check in at MyRPData.com.
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