Strongest monthly lot sales result in more than 3 years
The metropolitan and regional growth areas recorded 1,484 gross lot sales in August, a 26% monthly increase and the strongest result in more than three years, since May 2022. Sales activity was likely inflated by August containing five trading weekends. However, purchaser activity has accelerated on the back of improving affordability, driven by three interest rate cuts in 2025 (one of which occurred in August) alongside ongoing developer incentives such as rebates and discounts.
Share of sales in the South East surpasses Northern
All growth corridors in Melbourne, along with Geelong, Ballarat, and Drouin/Warragul, recorded double digit gains in lot sales over the month. The rate of increase in sales activity was relatively high in the South East corridor, lifting its market share to 26%, and marginally above the Northern corridor for the first time since January. Geelong also grew its share to 10%, while the West retained the largest proportion at 28%, though this was down from July.
Larger lot sizes support lot price growth
In Melbourne, the median lot size rose 4.5% to 375sqm, the highest in two and a half years. Geelong recorded even stronger growth of 7.7%, pushing its median to 392sqm. Larger lot sizes underpinned price growth of 2.5% in Melbourne (to $407,000) and 3.9% in Geelong (to $377,000). However, because lot sizes grew faster than prices, the median price per square metre rate declined in both regions.