The September quarter results were split between strong results for the residential market and a decline in values for industrial properties.

The residential market performed particularly well with the average improved value increasing from $309,000 for the June quarter to $330,000 for the September quarter. This figure has steadily increased since September 2008 when it was $270,000.

Interestingly, the value of vacant residential land has not increased this quarter; instead it has remained steady at $166,000. The increase in values were Broadmeadows that went from $290,000 to $342,000 (up 18%), Dallas / Coolaroo from $256,000 to $284,000 (up 10%), Roxburgh Park from $320,000 to $350,000 (up 9%) and Westmeadows from $320,000 to $352,000 (up 10%).

The industrial sector has shown that whilst the number of sales has increased, the values have fallen. The vacant industrial land values are showing their lowest levels since September 2008, with a median price of $209,000. The improved median price has fallen from $527,000 last quarter to $390,000 this quarter.

There has been once vacant land sale for commercial / retail properties for $1,350,000. The site was located on the corner of Pearcedale Parade and Dimboola Road, Broadmeadows. The allotment, with a land area of 2,750 square metres, was within a Business zone and sold at a rate of $490 per square metre.

Also within that area, an office building that has recently been constructed sold as an investment property for $3,980,000. The building was just over 1,000 square metres and was leased to a government tenant.

There are signs that the industrial market is improving. Recent sales around Hume show that purchasers are willing to invest substantial amounts into vacant development sites. In mid 2009, a parcel of vacant industrial land in Western Avenue, Westmeadows sold for $1,292,500.

The site which comprised just over 4,860 square metres indicated a rate of $265 per square metre. In Craigieburn, a site on the Hume Highway sold for $14,000,000. The property comprised 85,400 square metres of vacant land, indicating a rate of $163 per square metre.

There has also been a sale of a disused quarry at Bolinda Road in Campbellfield. The site comprised 16.18 hectares and sold for $5,350,000. The property, which currently comprises an open pit, may be suitable for redevelopment as an industrial estate once the site is filled.

To view the Hume City Council Economic Update (March 2010) please click here.