I will agree with most of what you say there, fact is the the old idea of home with a big back yard has created the urban sprawl witch creates the problem of needing more road and difficult to service with public transport.
Cost of land closer to CBD is in higher demand so value goes up, only option is to settle for a smaller lot
People are also time poor with both couples working so big yards are not so desirable.
Home designs have evolved and they now put 3-4 bed x 2 bath, garage for 2 cars and small court yard on a 300-350 sqm block. Not for me but people are accepting and embracing that.
That highlights the increasing value of land closer to CBD but it is also becoming the norm in new outer suburb developments
