By Rocky Gagliardi, of Gagliardi Scott Real Estate
DESPITE uncertainty from climbing interest rates and setbacks in the building industry, Shepparton continues to be resilient in the face of market challenges.
The price of blocks of land has subsided slightly, due to those in the market switching to existing dwellings. This is due to the increase in costs of building a home and the extended timeline of the build.
There’s an adjustment underway between land and existing homes. Although the market calmed a little, it’s still strong for residential properties. During the height of Covid, residential property was changing hands at break-neck speed and our expectations became quite high on the average days a property was on the market. We’re still experiencing excellent sales but the average days a residential property is on the market has increased to 15-25 days.
Land had come back a little in price and is selling at around $280k- $300k+ a block. The challenge going forward is the scarcity of land. The challenge for developers is the sheer cost of developing land with all the infrastructure involved.
It’s vitally important that anyone planning to build in the next few years is aware they must register their interest in blocks in new housing estates. New stock of available land will become scarce and even if you’re not financially ready to build, you will have time before the blocks title. This is your chance to get your foot in the door.
It’s also an ideal time as eventually interest rate rises will pause, and many people who are being cautious now will take the opportunity to buy, leading to an incredibly competitive market again.
