Median Price Per SQM Continues to Fall
Since peaking in March, the median price per sqm for Melbourne and Geelong lots continues to decline. Factors contributing to this emerging trend include reduced borrowing capacity as interest rates rise, and higher cost of living pressures as inflation accelerates and stretches household budgets. After experiencing stronger lot price growth over the year to May, affordability concerns in Geelong have seen its median lot price fall by 3% to $371,500, with a commensurate reduction in its median price per sqm after the median lot price remained static at 392sqm. Melbourne's median lot price per sqm also decreased after lot price growth of 2% (to a median of $383,000) was outpaced by the 3% rise in lot sizes (to a median of 377sqm).