Victoria’s regional land market entered 2025 on a softer footing, coming off a strong finish to 2024. The final quarter saw a notable spike in sales activity, fuelled by a wave of end of year releases and heavily promoted incentives.

As the calendar year rolled into the new year, momentum naturally cooled.

Seasonal patterns 

This slowdown isn’t out of the ordinary. Historically, Q1 tends to show a dip in activity as the market absorbs the year end push. This year followed suit.

Stock levels remained elevated. This was not due to fresh supply but because of the carryover from Q4. In fact, new releases actually declined over the quarter.

Bendigo breaks the trend

Among regional centres, Bendigo stood out as the only market to post a quarter on quarter increase in sales. Elsewhere, activity dipped modestly – well within the bounds of seasonal expectations.

Affordability holding firm

Despite the pullback in new supply, prices held relatively steady. Median lot prices across the regional markets either remained flat or fell slightly. This preserved the region’s key advantage: affordability.

Compared to metropolitan markets, regional areas continue to offer a compelling price buffer. That’s good news for both local buyers and those relocating from Metroplitan Melbourne.

Interest rate cut

February saw a shift in the economic backdrop, with the RBA cutting the cash rate to 4.1%. While inflation and cost of living pressures haven’t eased significantly, the rate cut has given buyer sentiment a lift. Improved borrowing capacity may offer more breathing room for first home buyers and upgraders in the months ahead.

This article references findings from our Q1 2025 Victorian Greenfield Market Report. Read the full report here.