The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialTaryn ParisMon 13 May 24

Victoria’s Dirt Merchants Need Incentives to Shift Lots

Greenfield developers in Victoria are increasingly leaning on incentives and rebates to shift their product as the market moderates. 

More than 75 per cent of buyers in Victoria’s greenfield market are owner-occupiers and sales volumes moderated in April, according to Oliver Hume data. 

Affordability and serviceability constraints were hampering potential buyers. 

Oliver Hume chief executive of project marketing Julian Coppini said the land market continued to face challenging conditions. 

“Although the fundamentals for the next phase of the market cycle are progressively falling into place,” Coppini said.  

Higher interest rates, increased cost of living and lower buyer confidence hindered many potential buyers from purchasing property.

Coppini said developers were relying on incentives and rebates, which had cut net lot prices in the past year. 

The Urban Developer understands incentives in the Victorian greenfield market are 5-10 per cent of the headline price, which is continuing to provide momentum in the growth corridors. 

Sales by buyer type

null
Source: Oliver Hume


“Although Victorian gross prices remain around record highs, net prices have fallen over the last year as incentives and rebates have become increasingly common. In recent months, many buyers have taken the opportunity provided by generous discounts,” Coppini said.
 
“Buyer activity has also edged higher recently, driven partly by a growing housing crisis and an increasingly tight rental market.

“The rebound in the broader residential property market has seen existing home-owners increasingly look to the new residential land market. Although price growth in the Victorian property market has lagged that of many other jurisdictions, many home-owners have sought to capitalise on growth in their home equity while developers are offering discounts.”

The number of first home buyers who made acquisitions in April of 2024 was 50 per cent in the Victorian greenfield market, the strongest it has been since August last year, while almost 80 per cent of buyers were aged from 26 to 40 years. 

Victoria’s median lot size is about 350sq m with a median lot price of about $386,900. 

According to Oliver Hume, the share of lots in the 350sq m to 399sq m category rose in April 2024 due to an increase in stock offered to the market and developer incentives. The more affordable 250sq m to 299sq m category also edged higher to more than one in every seven lots sold. 

ResidentialAustraliaPlanningReal EstatePlanningSector
AUTHOR
Taryn Paris
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/victoria-dirt-merchants-need-incentives-to-shift-lots