Metropolitan Melbourne’s land market ended 2021 on a strong footing, according to Oliver Hume Quarterly Market Insights.

The report found median lot prices in the city climbed by 6% over the December quarter and 11.3% over the year to hit a new record high of $355,000.

That strong performance was matched elsewhere in Victoria, with every major growth corridor Oliver Hume tracks recording a median land price of more than $300,000.

Geelong saw the biggest rise in land prices over the year, with the cost of a median lot in the city soaring by 23.6% to $339,300.

Land was most expensive in Cardinia. The average block of land in the shire will now set you back $429,900 – an annual jump of 23.2%.

Oliver Hume chief executive Julian Coppini said the real estate group expects to see further demand for regional land this year.

“Victoria’s land market is underpinned by record-low interest rates and positive sentiment towards the property sector in general,” he said.

“We are seeing strong demand for both regional and metropolitan markets. Although regional markets were increasingly popular before COVID-19, buyer interest has surged over the last two years. We expect regional property will remain highly sought after.”

 Freya Southwell is a property lawyer at Sutton Laurence King Lawyers.

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