Melbourne’s land market has become a hot commodity, with sales jumping 48 per cent in the last quarter, according to new research.
RPM Real Estate Group’s Residential Market Review has found that there has been an uplift in gross lot sales for the sixth consecutive month. Across the last quarter alone, Melbourne and Geelong’s land market increased 48 per cent from the previous quarter, representing 2,657 sales.
RPM’s head of communities, Luke Kelly, said renewed confidence and increasing housing values in the established market is encouraging “move up” buyers to sell their current home and upgrade to a new house and land package.
“This buyer cohort is supporting still prevalent first home buyers who comprise 68 per cent of owner-occupier purchases, providing a more balanced land market.
“Although Melbourne’s median lot price rose marginally to $315,500, we’re finding that continued incentives in the order of five to 10 per cent, which equate to sub-$300,000 pricing, and well-priced titled stock is attracting still price-sensitive buyers.
“If buyer confidence continues to strengthen, incentives and rebates continue to materialise into net median pricing under $300,000 and the median lot size remains under 400 sqm, we will likely get back to a stable and sustainable market by mid-2020,” he said.