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Victorian Growth Corridors On Track for Record Year

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Melbourne and Geelong’s eight growth corridors are on track for a record year of sales, despite plummeting land stock according to real estate group Red23.

Land sales volumes across growth corridors have grown 10 per cent with more than 12,000 lots sold this year, compared to a total of 15,000 in 2020.

The data demonstrates the ongoing demand for house and land packages across the region, which was on track to equal the record-high of 20,000 lots in 2017, according to Red23.

There was also a modest 1 per cent growth in median land prices in June.

Latest data from Red23’s August report of land sales across the Melbourne and Geelong’s eight growth corridors showed recovery from a dip in May, while some areas recorded negative year-on-year growth.

Median land price: June 2021

Growth corridorJune '21June '20YoY change
Casey$402,500$346,00016%
Hume$352,400$340,9003%
Whittlesea$338,000$322,10005%
Cardinia$337,000$349,000-3%
Melton$329,00$296,00011%
Wyndham$311,500$318,950-2%
Greater Geelong$283,000$275,0003%
Mitchell$272,000$265,0003%

Source: Red23 - August report

According to the Australian Bureau of Statistics the city of Melbourne continues to record net losses of residents migrating regionally and interstate.

In the first quarter of 2021 there was a net loss of 8300 people for Greater Melbourne, compared with 8500 in the previous quarter.

Melbourne had net losses of 4800 people to the rest of the state and 3400 interstate.

Melton growth corridor attracted the highest volume of sales with more than a quarter (26 per cent) of all land sales this year in Victoria’s growth corridors.

The western corridor has absorbed 40 per cent of land sales this year.

House and land package prices now range between $599,000 and $729,500, compared to Melbourne’s median house price, which rose to $753,100 in June.

Land prices continue to increase as a result of limited land availability, which has fallen for the fifth consecutive month.

There is less than one month’s worth of supply across 200 land projects in the growth corridors, according to Red23.

Mitchell was the most affordable median land price at $270,000 while the City of Casey had the most expensive median land price at $402,500.

Melbourne-based ICD Property and Thai developer Supalai have sold off two town centre sites within the Gen Fyansford estate outside of Geelong.

The sites at 47 Hyland Street and 51-59 Hyland Street collectively sit on 6.2 hectares and were sold to a private investor for development.

Savills Australia sales agent Benson Zhou said ICD and Supalai had decided to on-sell the commercial-zoned land to focus on their 1200-lot residential development in the estate.

“The buyer made a very strategic purchase with the acquisition of these two landholdings,” Zhou said.

“The sites have the potential for a range of uses, including but not limited to a supermarket, specialist retail, commercial and community facilities, plus options for a mix of medium and high density residential, making the land extremely versatile and multi-purposed.”

ICD, Supalai offload two sites

Melbourne-based ICD Property and Thai developer Supalai have sold off two town centre sites within the Gen Fyansford estate outside of Geelong.

The sites at 47 Hyland Street and 51-59 Hyland Street collectively sit on 6.2 hectares and were sold to a private investor for development.

Savills’ sales agent Benson Zhou said ICD and Supalai had decided to on-sell the commercial-zoned land to focus on their 1200-lot residential development in the estate.

“The buyer made a very strategic purchase with the acquisition of these two landholdings,” Zhou said.

“The sites have the potential for a range of uses, including but not limited to a supermarket, specialist retail, commercial and community facilities, plus options for a mix of medium and high density residential, making the land extremely versatile and multi-purposed.”

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Article originally posted at: https://www.theurbandeveloper.com/articles/victorian-growth-corridors-on-track-for-record-year