New land sales in Ballarat fell for the fourth consecutive quarter, to their lowest level in seven years, as buyers continue to sit on the side line amidst rising interest rates, cost of living pressures, and building industry caution. Our Q1 2023 Greenfield Market Report revealed lot sales in Ballarat dropped 55% in the first quarter of 2023, with just 43 lots sold, a significant 87% year-on-year fall and the lowest level of sales since March 2016, when 42 lots transacted.
The decline in sales reflected a decline across the broader Victorian market, with Melbourne and Geelong’s growth regions recording a 9% fall in new land sales, with just 1,879 lots sold – the sixth consecutive quarter sales have dropped and the lowest level of sales in four years.
Despite the dip, the median price of land in Ballarat increased slightly, lifting by 0.5% to $315,999, although buyers were able to take advantage of an increase in rebates and incentives on offer to save an average 5%, equating to about $25,000. New land released to the market in Ballarat fell to just 62 lots in the quarter, with a total of 375 lots now on the market, and the median lot size remained at 448sqm for the fifth consecutive quarter.
RPM Managing Director Project Marketing, Luke Kelly, said while new land sales continued to be challenged by affordability concerns, there were opportunities for purchasers to secure a deal. “Buyers who understand their borrowing capacity and are in a position to purchase are seeing the opportunity in the market, with more choice available and a genuine willingness from developers to negotiate, particularly on titled lots,” he said.
This article references findings from our Q1 2023 Greenfield Market Report. For the full report, click here.