The humble patch of grass that probably earned FOUR TIMES what you’ve done in the past 18 months – and you can pick it up now IF you can afford it
- A 712m2 lawn in Melbourne, 3 miles from the CBD, has appreciated in 18 months
- It last sold for $5,725,000 but is now on sale again for between $6.3-6.9 million
- The price may have jumped between $575,000 and $1,175 million in 18 months
- The average Aussies would have made just $135,000 in the same span of time
The grass growing in an unused lawn 3 miles from a bustling CBD will earn four times as much as most average Aussie salaries in the past 18 months.
The 712sqm land in chic Toorak, east of Melbourne’s city hub, sold for $5,725,000 in March last year and is now up for sale for $6.3-6.9 million.
The target price for the sale would yield a potential profit of between $575,000 and $1,175 million in 18 months.
That’s at least four times as much According to the latest ABS figures, Australian with an average full-time annual salary of $92,029.60 would have earned in the same span of time.
And at the higher end of the estimated retail price, it’s almost 10 times the $135,000 an average hard-working Aussie would have made in those 18 months.
The 712sqm land is located in Toorak, 3 miles from the Melbourne city hub and was sold for $5,725,000 last March (pictured)
The plot of land (pictured) can contain two townhouses or a modern house, depending on who picks it up
RT Edgar Toorak agent Max Ruttner said the owner bought the empty floor plan to build on, but saw another opportunity – so the lot has stood still.
“They bought it extremely well,” he said. “They just bought it at a time when the previous sellers wanted to sell,” Mr Ruttner said Nine Newspapers.
The land is now worth between $6.3 million and $6.9 million, rising in value to $1,175 million.
It has approved plans and permits for a modern home or two townhouses, and the agent said developers and local residents are interested.
But he said developers are wary of investing in new construction given the rise in construction costs plaguing the sector.
A wave of devastating collapses has sent businesses across the country succumbing to high costs and supply difficulties.
Meanwhile, the Toorak lot costs $8800 to $9700 per square foot, while other parts of the suburb cost $10,000 per square foot.
David Morrell, a Prestige buyer, said property buyers in Toorak could earn $7,500 to $14,000 per square foot, depending on position.
“Land is still wanted and still going up,” he said. “They just don’t make it anymore.”