Regarding replacement cost, we had an interesting update today : the state of land report, annual study done by The Urban Development Institute of Australia. They publish an annual update of median lot price (large part of replacement cost). In 2022, the median lot price in Sydney increased by 31 %*, after + 14 % in 2021. So, average lot prices increased by 50 % in 2 years in Sydney.
When I put together the average lot price/m2, the average land size of a house and the average cost to build a home in Australia**, it seems that median house prices in Sydney are valued under their cost of replacement. * and by 20 % nationally (after + 10 % in 2021). ** source : ABS in April 22.
