Where to get the best bang for your buck on vacant land

New data from the Housing Industry Association has revealed the council areas where South Aussie househunters can get the most bang for their buck when buying vacant land.

According to the report, of council areas with at least 10 vacant land sales over the three months ending September 2024, Yorke Peninsula was revealed as the state’s best value.

With a median lot size of 744sqm selling for a median $155,000, it offered the state’s lowest price per square metre at just $204.

This sits some $74 less per metre less than the average regional SA house block, which is 685sqm and sells for $185,000, and is significantly lower than the price per square metre of the state’s highest-priced council area for vacant land – Charles Sturt.

Here the typical lot size of 205sqm sells for a median $333,000, equating to a whopping $2000 per square metre.

Across metropolitan Adelaide, the typical vacant allotment (375sqm) sells for $268,700, or $691 per square metre.

Elders Real Estate Yorke Peninsula director Len Easther said the biggest problem with vacant blocks in his council area was that there simply weren’t enough of them.

“There is very little supply here and they sell fairly quickly when they come up,” he said.

Adelaide is currently Australia's fourth most expensive capital city to live in but South Australia offers great value when purchasing land. Picture: Getty

“As a result, prices have jumped up significantly.

“Those blocks that are now selling for $155,000 – before covid they would have been selling for between $110,000 and $115,000. Despite that they still offer good value for money.”

Mr Easther said vacant blocks in the Yorke Peninsula council area were particularly sought by both retirees looking to secure a coastal lifestyle and investors looking to capitalise on an undersupplied rental market.

While the best value, the data showed Yorke Peninsula’s allotments weren’t the cheapest, with the typical vacant lot of 716sqm in the Mount Gambier council district selling for $154,000.

Of council areas within the Adelaide metropolitan boundary, the Gawler council area offered the best bang for buyers’ buck, with the median block size of 420 sqm selling for $210,000, or $525 per square metre.

Conversely, Mitcham council was home to the state’s most valuable vacant lots, with the typical 602sqm block selling for a$559,000 median – the equivalent of $1245 per square metre.

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Harris Real Estate agent Lincoln Marshall who is selling a vacant lot at 98 Parkers Rd, Torrens Park in the Mitcham Council area said land in the council area was always prized due to its exclusivity.

“Vacant allotments in this area are always popular, but they have become more difficult to sell since the days of the covid boom when they were walking out the door, and that’s simply because the costs of building have soared,” he said.

“They’re still good value because of their blue-chip location, but buyers are now a lot more wary of building costs and the time that process may take, and as such there’s a lot more demand for flat blocks than sloping ones, simply because they’re going to be cheaper to build on.

“But land in the Mitcham council is always going to be a solid investment because it is such a desirable area – particularly around Scotch College and near the Mitcham Shopping Centre, and again, particularly if that land is flat. People love this council’s infrastructure and they’re prepared to pay to be near it.”

This article first appeared on realestate.com.au and has been republished with permission.