Our Q1 2023 Greenfield Market Report has revealed that the Northern Growth Area has captured its highest share of new land sales across the Melbourne and Geelong growth areas in seven years. Melbourne’s North accounted for 30% of total sales across the city’s regions in the first quarter of 2023, with sales remaining strong despite headwinds in the broader market.
New land sales in the Northern Growth Area dipped just 3%, with 564 new lots sold – a third of the decline experienced across the wider Melbourne and Geelong growth areas. In the wider region, sales dropped 9%, the sixth consecutive quarter to record a fall, as buyers continued to sit on the side line amidst rising interest rates, cost of living pressures and building industry caution.
Across Melbourne and Geelong, a total 1,879 lots sold, down from a high of 7,855 in Q2 2021 and consistent with the previous pre-pandemic cyclical low in Q2 2019 when 1,865 lots sold. RPM Managing Director Project Marketing, Luke Kelly, said the Northern Growth Area’s relative affordability continued to appeal to buyers.
“The median price in Melbourne’s North during the quarter sat at $365,000, which is 5% and 12% below the Western and South-East Corridors respectively, with the average price across the four growth regions $380,900,” he said.
“As a result, the area enticed the largest share of first home buyers of any of the regions, with buyers stepping into the market accounting for three-quarters (76%) of all owner-occupier sales.”
“The North also recorded a higher proportion of younger buyers, in the 25 to 34 year age range, as a result, with couples with children accounting for more than half of all buyers, representative of the area’s popularity with young families.”
Mr Kelly said new supply, which increased 28% with 562 lots introduced during the quarter, also underpinned the relatively strong sales result, as did the fact buyers were able to take advantage of rebate and incentives in the market to save an average 5%, equating to about $25,000.
In another positive sign, those walking into new land estates across Melbourne and Geelong’s 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.