Lot sales continue to gradually rise
New home demand continued to gradually increase in April, with gross sales across the metropolitan and regional growth areas rising by 5.4% to 934 lots. Encouragingly, recent momentum was not impeded by seasonal factors in April. The February interest rate cut is augmenting purchaser incentives such as rebates and discounts by helping reduce barriers to entry in the new home market for prospective buyers. However, sales activity remained 7.5% below the corresponding figure in the same month last year, highlighting the ongoing cautiousness in purchaser sentiment as affordability concerns persist.
Northern growth corridor claims most dominant share
Notably, April marked the first time in over nine years that the Northern growth corridor recorded the most dominant share of total sales, with its 30% share marginally higher than that for the Western growth corridor. Furthermore, a considerable 45% growth in lot sales in the South East growth corridor led to its share rising to 27% and highlights the relatively even spread of activity across Melbourne. Conversely, lot sales declined by 31% in Geelong, reducing its proportion of sales to 6%.
Melbourne’s median lot size diminishes leading to price decline
After trending upward earlier in 2025, Melbourne’s median lot size declined in April, falling 1.9% to 358sqm. This led to a 1.3% drop in the median lot price to $395,000. Incentives such as discounts and rebates, ranging from 5% to 10% of the headline lot price, remain common across the market. Geelong’s median lot price increased by a solid 5.3% to $399,000, matched by growth in its square metre rate, while the median lot size held steady at 400sqm.