Geelong becomes more expensive than Melbourne
Melbourne’s median lot price contracted by 3.1% over July to $370,000, which was the largest monthly correction in three years since the middle of 2019. Downward pressure is being applied on lot prices from intertest rate rises and steep growth in construction costs. Furthermore, weakening competition among purchasers for vacant lots is also providing buyers with more opportunities to reduce their lot spend without sacrificing lot size, as highlighted by the median lot size remaining steady at 350sqm. Consequently, Melbourne’s median per sqm lot price experienced a similar decline, and more significantly for the first time, became more affordable than the corresponding figure for Geelong. This occurred after Geelong’s median lot size diminished by a sizeable 12.5% to 350sqm, a record low and the same size as in Melbourne, whilst the fall in its median lot prices was more moderate 2% fall to $379,000.