Notable Decline in Price Per SQM Rates
Absorption continues to outpace new supply despite releases escalating over September. Combined with lots returned to the market though, total stock on the market continued to increase. This, together with the added competition from lot supply in the secondary market, has resulted in a more pronounced downward pressure on lot prices through September. Melbourne’s median lot price declined by 1.3% to $385,000, while its per square metre rate contracted by a greater 4.8% after the median lot size increased by 3.7% to 363sqm. Geelong’s per square metre rate decreased by a sizeable 11.9%, following a 13.6% rise in its median lot size to 414sqm and its median lot price remaining static at $395,000.