The Western Growth Corridor continues to dominate new land sales across Melbourne and Geelong, despite sales falling over the quarter. Our Q1 2023 Greenfield Market Report revealed the Corridor captured 42% of all sales across the region in the first quarter of 2023, with 797 new lots sold – a 7% decline on the previous quarter.
The dip was in line with the broader market, with new land sales falling 9% across Melbourne and Geelong – the sixth consecutive quarter sales dropped, 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 Q3 2021 and consistent with the previous pre-pandemic cyclical low in Q 2019 with 1,865 lots sold.
The median sale price in the Western Growth Corridor held firm at $385,000, above the $380,000 average recorded across the wider region, although buyers were able to take advantage of an increase in rebates and incentives on offer, saving an average 5%, equating to about $25,000.
RPM Managing Director Project Marketing, Luke Kelly, said demand for the Western Growth Corridor was driven by its continued appeal with families and buyers entering the market. “Couples with children dominated sales during the quarter, representing 59% of purchasers,” he said.
“The majority of buyers, at 71%, indicated they were planning to own and occupy their home, with 69% of those first home buyers, an indicator of this area’s desirability and relative affordability for those stepping in to the market, despite prices remaining slightly higher than the broader region’s average.”
Mr Kelly said three new communities were released in the Western Growth Corridor in Q1 2023, bringing total estates now selling in the region to 85, although new supply declined by 10% with just 746 new lots released; the highest quarterly fall across all growth areas.
He said, in a 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% from last quarter.
This article references findings from our Q1 2023 Greenfield Market Report. For the full report, click here.