New land sales in the Geelong Growth Corridor has lifted 7%, defying a drop in sales across Melbourne’s broader growth regions. Our Q1 2023 Greenfield Market Report revealed Geelong as the only of Melbourne’s four growth regions to record an uptick in sales for the first quarter of 2023, as demand and supply recovered following the previous quarter’s long-term low.
In total, 173 lots sold during the quarter, while new land releases increased 45% in line with a rise in estates actively selling, which saw 15 new lots introduced to the market. The median lot price also increased 1% to $389,000, sitting above the average across the broader Melbourne region of $380,900, while the median lot size remained static at 400sqm.
However, while headline prices held firm, buyers across all regions were able to take advantage of an increase in rebates and incentives on offer, saving an average 5%, equating to about $25,000. Land across Melbourne’s broader growth regions dipped 9% during the quarter to just 1,879, down from a high of 7,855 in Q3 2021 and consistent with the previous pre-pandemic cyclical low in Q2 2019 when 1,865 lot sold.
RPM Managing Director Project Marketing, Luke Kelly, said Geelong’s upward trajectory was underpinned by strong investor appetite for the region. “Investors made up 43% of purchasers during the quarter, the highest of Melbourne’s growth regions, zeroing in on the area because of its desirable location and the significant investments being made in infrastructure and economic diversification to support its growth,” he said.
“Upgraders and downsizers led the charge when it came to owner-occupier buyers, which has driven demand for larger homes, with 38% of buyers planning to build sizeable abodes measuring more than 30 squares.”
Mr Kelly said, in a positive sign, those walking into new land estates across the Melbourne and Geelong growth regions had already done their research and were prepared to act, with 43% making their buying decision on their first visit, an increase from 39% last quarter.
This article references findings from our Q1 2023 Greenfield Market Report. For the full report, click here.