The median lot price in the Western Growth Corridor, which includes Wyndham, Melton and Bacchus Marsh has increased by 6.1 per cent, despite lot sizes falling 1.1 per cent, according to new data.
RPM’s Quarterly Greenfield Market Report provides insight on the vacant land sector from April to June of this year.
The report indicated the western growth corridor had maintained its place as the dominant growth area, accounting for 45 per cent of sales.
A demand shift from Melton to Wyndham saw a sales increase of three per cent in the municipality, despite a drop in Q2 sales catalysed by increasing residential construction costs, rising living expenses fuelled by inflation and higher home loan repayments.
RPM managing director project marketing, Luke Kelly, said today’s buyer faced multiple challenges that weren’t present two years ago.
“Many buyers have been forced to re-assess their borrowing capacity and re-evaluate their buying decisions in light of interest rate rises, including the most recent 0.5 per cent increase in the cash rate to 1.85 per cent,” Mr Kelly said.
“This is leading to a subdued market in the coming months, with a number of prospective buyers deciding to sit on the sidelines as a result of the uncertain climate, resulting in declining month-on- month sales activity.
“Thankfully the new home market is already adapting to these challenges with product offerings including more townhomes, small lot housing and smaller conventional lots to meet buyers’ needs.
2049 gross lot sales were made in the quarter and 2197 new lots were released.
A 400sqm block of land would cost an average of $589,000 in Point Cook, $450,000 in Truganina, and $420,000 in Tarneit.
In Mambourin homeowners would pay $382,500, $376,000 in Werribee and $360,000 in Manor Lakes.
