‘Better value for money’: How much are you willing to spend for a bigger block in Canberra?

A new report has found Canberrans are getting more bang for their buck when purchasing property on large blocks of land than buyers in other capital cities. 

Domain’s Housing affordability: The Price Per Square Metre report, released on Friday, revealed Canberra homes have the second largest median block size of all Australian capital cities, despite being the third most expensive in regards to price per square metre.

The median block size for a home in Canberra is 748 square metres, behind Darwin’s 806 square metres, and was found to cost a median of $1517 per square metre, putting it in third place behind Sydney and Melbourne. 

The top 10 suburbs where it is most expensive to buy a home per square metre were all in Sydney, and Canberra didn’t place on the board until the 347th spot, with Crace coming in at $3392 per square metre. 

Domain chief of research and economics Dr Nicola Powell said in comparison to the other capital cities, Canberra may not be as unaffordable as the growing house prices suggest at face value. 

“Canberra has had one of the largest price increases since the pandemic began, soaring above Melbourne … but, Canberra has a lower price per square metre than Melbourne does,” she said. 

“This is because Canberra’s block sizes are 38 per cent larger than Melbourne’s, so in other words, Canberra buyers receive greater value for money.”

Canberra’s position among Sydney and Melbourne’s cost-per-square-metre rankings is one of the stark differences caused by the pandemic upswing, Powell added. 

“Canberra did have a price per square metre similar to Adelaide, Darwin and Brisbane,” she said. 

“The extreme price growth through the pandemic upswing and the different housing landscape [we are in now] has made it more difficult to find smaller and more affordable blocks in Canberra.

“[This is not saying] that Canberra is affordable or not seeing high growth in housing costs.” 

There are multiple reasons buyers can benefit from purchasing homes on larger blocks thanks to Canberra’s higher median block size, said Alexander Smout of Belle Property Canberra. 

“People are aware that the block is the appreciating asset and the home is the depreciating asset, so a lot of buyers are looking for those larger blocks, particularly in more established suburbs,” he said. 

“When I am advising buyers, I tend to tell them to go for the biggest block they can, usually above 750 square metres.

“They then have the advantage if they are ever looking for redevelopment as well, because that underpins the value further down the track … there is always scope for building.” 

Canberra’s larger block sizes nationally pay homage to the capital being a city of families and generational groups, he added. 

“Certainly, people looking for large blocks tend to be families, or those who want to add a pool and do things outdoors,” he said. 

“People in their 30s to 40s with kids of some kind on the way, they want blocks for their families to be able to grow up and run around in.

“There’s an option for pets as well as privacy, so there is certainly an allure that comes with Canberra’s larger land holdings, and it’s a benefit that is certainly desirable for a purchaser.”