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Did Speculation in Land Pay Off for British Investors? Buying and Selecting Land in South Australia, 1835-1850

Author

Listed:
  • Edwyna Harris

    (Monash University)

  • Sumner La Croix

    (Dept. of Economics, University of Hawaii)

Abstract

In 1834, Britain’s Parliament passed the South Australia Act establishing South Australia as a colony. By December 1835, 130 British investors had purchased 437 priority land orders (PLO) at £81 per order, allowing selection of a surveyed one-acre lot in the capital city of Adelaide and 80 surveyed country acres. In March 1837, PLO investors selected 437 lots from 1,000 surveyed Adelaide lots, with remaining lots sold one week later at auction. Investors who sold city lots in 1838/1839 earned on average 59 times initial investment, while investors who held until 1850/1852 saw the average assessed value of Adelaide lots and buildings increase by 16 times the initial investment in the lot. Initial Investors were able to identify higher-value lots, as higher prices paid for lots in 1837 predict higher sales prices in 1838/1839 and early selection of lots and higher prices paid for lots in 1837 predict higher assessed property values in 1850.

Suggested Citation

  • Edwyna Harris & Sumner La Croix, 2018. "Did Speculation in Land Pay Off for British Investors? Buying and Selecting Land in South Australia, 1835-1850," Working Papers 201809, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201809
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_18-09.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Adelaide; colonization; priority land order; South Australia; auction; Wakefield; Hindmarsh;
    All these keywords.

    JEL classification:

    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • N97 - Economic History - - Regional and Urban History - - - Africa; Oceania
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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