Momentum returned to Melbourne and Geelong’s new home market in Q2 2025, with gross lot sales climbing to their highest level in three years.

A total of 3,156 lots were sold across the growth corridors, marking a 48% jump on the previous quarter and 36% higher than the same time last year. While sales remain 25% below the decade average of 4,183 per quarter, the scale and breadth of this recovery marks a significant step forward.

Rate cuts and tax relief boost buyer confidence

A key catalyst behind this recovery has been improving buyer confidence; the RBA’s 25 basis point rate cut in February followed by the May cut, which bolstered the affordability boost already delivered by the July 2024 tax cuts. Together, these adjustments have eased borrowing pressures that weighed heavily on demand in recent years.

Titled and near titled lots drive activity

Sales were particularly lifted by strong demand for titled and near titled lots, which accounted for 59% of all sales in the quarter. Many of these blocks were offered with rebates and discounts, attracting buyers ready to move quickly.

However, as this segment often includes older stock, it contributed to a slight rise in selling times. The average lot took 190 days (just over six months) to sell in Q2 2025.

Median lot size and prices ease back 

After a temporary lift earlier in the year, median lot size has returned to its long term level of 350sq. This 1.7% reduction in size translated to a 1.3% fall in the median price, which settled at $393,000.

Supply levels edge higher 

Despite stronger buyer activity, total market stock edged up slightly in Q2, with an estimated 6,178 lots available. Key supply movements included:

  • New releases: 2,354 lots. Up 27%, marking the highest quarterly supply since Q3 2022
  • Returned stock: 832 lots. Up 11%.

While some settlement risks persist (linked to past borrowing capacity shifts and construction costs), cancellation volumes remain well below the peaks seen in 2019 and 2020.

This article references findings from our Q2 2025 Victorian Greenfield Market Report. Read the full report here.