Demand for real estate is at an all time high, yet value for money is continuing to be subjective.
According to industry analyst BIS Shrapnel, new housing blocks in Australian capital cities have decreased substantially over the last decade. The surge in the outer-fringe recent development of Melbourne, Perth and Sydney, has seen the median size of housing lots shrink by up to 32 per cent.
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Lot size reduction is a lucrative option for developers to create more blocks in the same area, but how does it impact buyers and the greater community?
Subdued land purchasing and low interest rates over the last few years have lead to an increase in house and land affordability. With smaller blocks becoming an option, the possibility for consumers to buy into the housing market creates a positive opening for many.
Since the property sales decline during the global financial crisis, Adelaide and Melbourne property desire has rebounded, with other states closely on their tail. The option for smaller blocks further promotes industry purchasing and opens the gates to consumer spending directed at the residential sector.
Continued low interest rates and positive consumer confidence leads to more first home owners and those looking to upgrade finding their ideal property. Smaller lot sizes may be the boost the residential construction industry and prospective buyers are looking for.
By Samantha Vlcek.