Lot sales decline in June, most notably in Melbourne growth corridors
Gross sales across metropolitan and regional growth areas reduced to 987 lots in June, declining by 16% from the previous month. This continues the recent trend of fluctuating sales activity, with growth in March and May, followed by declines in April and June. Seasonal factors and the numbers of trading weekends each month largely explain the swings. However, overall lot sales remain relatively weak from a long-term perspective. Market volatility, underpinned by successive interest rate rises and changes to taxation policy for residential investment, has impacted sentiment and led to more cautious behaviour from prospective buyers.
Share of sales jumps in Geelong and Ballarat.
The deterioration was felt most acutely across Melbourne growth areas. Lot sales in the Northern corridor contracted 30% in June, while South East and Western corridors both fell 20%. The Northern corridor’s steeper drop pulled its share of total sales down to 22%, and the Western overtook it with a steadier 25% share. Conversely, new home demand climbed in Geelong and Ballarat, lifting their share of total lot sales to 16% and 10%, respectively.