The latest property trend - higher prices for smaller blocks

Stockland is charging a higher price for smaller property lots in its residential developments, according to 2012 interim results.

During the second half of 2011, the developer charged about $469 per square metre for a lot measuring 451 square metres compared with $447 per square metre for a lot measuring 481 square metres.

Over this period the average price of its lots has remained virtually unchanged at $212,000 ($215,000 for the 2011 financial year) despite a 6% reduction in land size.

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This trend of rises and smaller lot sizes dates back to 2010 financial year, when Stockland reduced its average lot size from 569 square metres to 510 square metres but pushed up the price from $362 per square metre to $403 per square metre.

Stockland has also managed to maintain profit margins on land sales despite reducing its average lot size:

 

 

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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