Sales activity continued to increase despite mounting headwinds.
New home demand remained resilient through March, with gross sales across Metropolitan and Regional growth areas rising 7% to 1,272 lots. This uplift is notable given the continued pressure on affordability from consecutive interest rate rises, intensifying cost of living pressures, and broader economic uncertainty. While some softening in purchaser confidence likely emerged, it was partly offset by developer rebates, incentives, and government support measures, including grants and low deposit schemes, which continue to lower barriers to entry.
Northern maintains dominant share, Geelong & Ballarat dip from recent highs.
The Northern growth corridor strengthened its leading position, lifting its share of total lot sales to 28% following a 15% increase in activity. The South East recorded higher monthly growth, pushing its share to 21%. Sales in the Western corridor also rebounded, though its overall share edged down to 25%. On the other hand, a decline in activity resulted in the proportion of Geelong and Ballarat lot sales reducing to 13% and 4% respectively.
Median sizes remain stable in Melbourne, increases in Geelong.
Pricing remained relatively stable. Melbourne’s median lot price increased 0.5% to $405,000, with lot size unchanged at 353sqm, resulting in a corresponding lift in the per sqm rate. In Geelong, the median lot size expanded 3.9% to 412sqm (the highest level in over a year) though this did not translate to price growth with the median lot price easing 1% to $385,000.