Demand for land in Victoria has remained strong despite the end of HomeBuilder, according to figures released by Red23 this week.
In the first quarter of 2021 demand for land peaked, with lots being sold just 3.5 months after being released, signalling a boost to consumer confidence in the recovering Victorian economy.
NAB’s Residential Property Index showed Victoria was still lagging in the market sentiment levels, however, it was now tracking at its highest level in 12 months.
Land stock was also at its lowest with a shortage of available land in Melbourne and Geelong. Many of the growth corridors had less than two months’ worth of stock to sell in March, 2021.
According to Red23 data, all municipalities, except for Melton and Wyndham, had less than 200 lots on offer at the end of the first quarter of 2021. Hume, Melton and Casey were the most in demand for the quarter with an average time to sale of under three months.
Stock overhang by municipality
Median land prices
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Land prices in metropolitan Melbourne increased 1 per cent to $328,000, a 0.92 per cent increase year-on-year.
Woodlea estate in Melbourne’s western growth corridor has tripled its lot sales compared to this time last year.
Project director Matthew Dean said low interest rates and government incentives had boosted buyer confidence. He said the lots released this year were sold out within days.
“We were pleased to know that some Woodlea buyers had secured the Homebuilder grant but it was not evident that it was a key driver for our continuous sell outs,” Dean said.
“The buyer demographic across the last quarter suggests that the grant, while a value add to many buyers, is not a key driver in the decision to purchase land but rather purchasers have sought a community that is already well-established in terms of infrastructure.”
Dean said Woodlea had sold 147 lots this year, and there were recently 350 registrations for 31 blocks of land, which sold out in two days.
But the drive to new house and land estates has not been limited to Melbourne’s growth corridors and Geelong.
Satellite cities including Ballarat have also enjoyed a booming period of construction and population growth.