Lot sales across Melbourne and Geelong surge

After several challenging years, Victoria’s greenfield market is showing clear signs of a sustained recovery. Two rate cuts in February and May, combined with last year’s tax cut, have eased borrowing constraints and are steadily reigniting buyer confidence.  

Lot sales across Melbourne and Geelong surged 48% in Q2 2025 to its highest quarterly level in three years, while auction clearance rates in Melbourne sit at an 18-month high.  

As ANZ’s Daniel Gradwell notes in this quarter’s Q&A, confidence has been the missing ingredient in recent years and is now starting to return.  

That said, it’s not all smooth sailing; construction costs remain the key challenge. While material costs have stabilised, elevated labour costs are keeping overall construction costs high.  

This quarter’s report explores these and other dynamics in detail. It unpacks the latest data and sentiment shifts shaping the Victorian greenfield market.