Measured momentum as rate cuts stir cautious optimism.

Victoria’s greenfield land market entered 2025 with cautious optimism, buoyed by the Reserve Bank of Australia’s (RBA) first interest rate cut since 2020. The February decision to lower the cash rate by 25 basis points followed a sustained drop in inflation through late 2024, offering some long awaited relief to buyers. 

But sentiment didn’t shift overnight. Enquiry levels began to lift, though many waited to see how the market would respond before acting. When momentum did return, it was measured. Gross lot sales across Melbourne and Geelong reached 2,094 in March – up 1% on the same time last year but still 2% shy of Q4 2024. The reflects a market still wrestling with affordability pressures, despite a more favourable interest rate environment. 

Buyer caution is evident in both product choice and pace. But with scale, product diversity, and relative affordability on its side, the greenfield sector remains central to meeting the state’s housing supply targets.