Wyndham’s lot sizes diminished and block sales increased in the last three months of 2021, according to a new report.
Compiled by RPM Group, data from the latest Greenfield Market report highlighted Melbourne’s greenfield property sector performance across the last quarter of 2021 (October-December).
Median lot size in the western growth corridor (Wyndham, Melton and Bacchus Marsh) shrank by 5.1 per cent, notably smaller than other growth corridors, according to the report.
RPM Group’s project marketing managing director Luke Kelly said in order to keep housing affordable, land size in the area could continue to shrink.
“We can’t just keep putting prices up. There’s a mixture of prices going up, but also land size coming down to make sure that we’re keeping the land price at a good rate,“ he said.
“The actual land size has gone from 412 square metres down to 368 square metres.”
With 42 per cent market share, Melton, Wyndham and Bacchus Marsh maintained a predominant proportion of sales activity across growth areas.
Mr Kelly highlights rising prices in inner Melbourne as a key contributor to the results.
“When the housing market gets so expensive, people simply can’t afford it anymore. So what they need to do is look at alternatives to what it is that they can afford.”
“That’s obviously put a lot of pressure in having to move further out, they have to move to Tarneit or Truganina.”
Head of Research Michael Staedler believes Wyndham’s 28 per cent annual growth can be attributed to an increase in the number of properties for sale.
“The 28 per cent increase in block sales was largely due to releases on the market from the December quarter, which was just over a thousand, compared to the same quarter in 2020 which was 378.”
“So you had 700 more lots on the market for buyers to choose from. That was the largest quarterly increase out of all the corridors we track.”
