Developers are boosting buyer incentives in the western growth corridor as they look to move stock in the lead up to Christmas according to RPM Group.
The move follows new RPM figures showing sales in the western corridor, which includes the local government areas of Melton and Wyndham, falling by 6 per cent in the September quarter to 765 lots, a 33 per cent decline from the same quarter last year.
The median lot price rose slightly by 0.6 per cent to $385,000 while the median lot size was stable at 350sqm.
The decline in sales mirrored that of the broader Melbourne and Geelong growth areas where sales fell 6 per cent to 2,023 lots in the September quarter, as prospective buyers faced a multitude of hurdles from reduced borrowing capacity through to stubborn inflation and cost of living pressures.
New supply in the western corridor fell sharply by 22 per cent to just 611 new lots, which is the lowest figure since the third quarter of 2013.
RPM project marketing national managing director Luke Kelly, said the slowing rate of lot absorption had pushed developers to hold off releasing new land.
“New supply is now at a low, which is concerning for the future as there won’t be a pipeline of land ready to go when the market turns,” he said.
“Owner occupiers made up just 59 per cent of purchasers in the west – the equal lowest proportion of the four growth areas and indicative of the challenges buyers are facing in the current market.
“However, on a positive note first-home buyers made up 68 per cent of all owner occupier buyers, demonstrating there are still opportunities for buyers to take that first step on the property ladder.”
Mr Kelly said developers in the western corridor were focused on shifting titled stock and doing deals in the weeks leading up to Christmas, a positive for qualified buyers.
“Developers have less than two months to shift the titled stock on their books which has led to a significant increase in incentives being offered to buy now, which are sitting in the range of 5 to 10 per cent off the headline price,” he said.
