Sales activity is stabilising, remains near 2025 monthly high
Activity across metropolitan and regional growth areas eased for the second consecutive month, falling 4.7% over October to 1,367 gross lot sales. The softer result comes after higher than expected Q3 inflation shifted expectations for interest rates, temporarily pausing the anticipated easing cycle. Even so, buyer sentiment remains steady, supported by a clearer affordability outlook through 2025 as reflected in sales activity sitting 47% higher than a year ago.
Northern becomes the dominant corridor by lot sales
For just the second time in 2025, the Northern growth corridor accounted for the highest share of total monthly activity at 30%, supported by a 6% lift in lot sales. This was partly helped by a 19% decline in the Western growth corridor, which saw its share fall to 27%. The South East and Geelong also recorded growth, lifting their respective share of total sales to 23% and 10%. Meanwhile, Ballarat and Bendigo reversed last month’s outcome, with Ballarat’s share of activity coming in at roughly double that of Bendigo.
Incentives and shift in sales activity supports headline prices in Melbourne
Melbourne’s median lot size was static at 350sqm, although its median lot price escalated 1.4% to $398,000. An increase in the share of sales activity occurring in the higher priced South East growth corridor, and the continued availability of rebates and discounts, both supported growth in headline lot prices. Geelong’s median lot price corrected by 2.8% to $367,000, attributed to a larger 5.5% reduction in its median lot size to 367sqm.