Buyer sentiment stronger at the end of 2025 compared to 2024
Sales activity across metropolitan and regional growth areas softened in December 2025, with monthly volumes down 37%. This decline was expected, reflecting the reduced number of trading days typically seen at a year’s end. More telling was the broader context. A total of 974 gross lot sales were recorded, representing a 41% increase on December 2024 activity. This highlights the steady improvement in purchaser sentiment through 2025, underpinned by a modest easing in affordability pressures that has encouraged more buyers back into the new home market.
Northern remains the dominant corridor, edging out Western
The Northern growth corridor remained the strongest performer, accounting for 28% of total lot sales. However, the gap to the Western corridor narrowed considerably, which contributed 27% of activity. Despite their leading positions, both corridors saw a decline in their share of sales compared to the previous month. A similar pattern was seen in Geelong, where the proportion of sales fell to 10%. Conversely, both the South East and Ballarat lifted their share of sales to 21% and 5%, respectively.
Melbourne’s median lot price in December down 3.4% annually
Melbourne’s median lot price edged up by 0.3% over the month to $396,000, although it remained 3.4% lower than in December 2024. With the median lot size holding steady at 350sqm, this points to some improvement in price points, supported by the continued availability of rebates and incentives offered by developers. In Geelong, the median lot price declined more sharply, down 6.9% to $375,000. This fall exceeds the 4% reduction in median lot size to 384sqm, resulting in a lower $/sqm rate.