Surge in outer area land costs

FOR the first time on record the median cost of land in the outer growth area suburbs is likely to eclipse the cost of building a house, research shows.

The median land price in Melbourne's growth areas such as new suburbs Wyndham, Whittlesea, Casey and Melton rocketed 24 per cent in the past 12 months to $212,750 last quarter.

According to research from property group Oliver Hume, the cost of building a new home has risen to $216,097, leaving a gap between the price of land and constructing a new house of just over $3000.

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Comment:  Would this be true if there was more land available?  Free more land and make land more affordable.