Melbourne
Image – Canva
  • Land prices have increased 7.7% over the past year in Melbourne’s key growth areas
  • The median price in almost every municipality hit a record of $334,900
  • The fastest growing municipality was Casey recording a land price increase of 18.5%

Land prices have increased 7.7% over the past year in Melbourne’s key growth areas, according to the latest Oliver Hume Quarterly Market Insights.

The median price of conventional lots in almost every municipality hit a record of $334,900 in the three months to September, while all lot type prices increased by 7%.

Oliver Hume chief executive officer Julian Coppini said strong demand for land continued to put upward pressure on prices and pricing momentum remains positive.

The fastest growing municipality was Casey, south-east Melbourne, recording the biggest annual change with a land price increase of 18.5%. However, the median lot price eased slightly from the previous quarter at $404,000.

Geelong, south-west Melbourne, recorded a median lot price of $313,750 in the September quarter, up 8.7% over the previous. New residential land in Geelong is now worth over $31,700 more than it was a year ago.

Melton recorded strong value growth with median lot prices increasing 15.1%, or $44,000, over the past year. 

Whittlesea also saw an increase in value with lot prices up, ending the September quarter up 11.1%, or $33,500, over the past year.

Mr Coppini said, “these figures demonstrate the confidence and enthusiasm in the greenfield markets across Victoria.

“The resilient performance of the land market, in a quarter dominated by Melbourne’s sixth lockdown, is a testament to the growing confidence of buyers and the skill and experience of the industry to deliver in very challenging conditions.”

Julian Coppini, Oliver Hume chief executive officer

Market being watched closely

The ending of lockdowns and the easing of COVID-19 restrictions in Victoria is an important milestone for the market and will underpin activity across the remainder of 2021 and the new year, said Mr Coppini.

“We are closely watching the market given the recent policy and other changes. The impact of APRA’s changes, in particular, will become clearer in the months ahead.”

Oliver Hume’s national head of research George Bougias said Victoria’s greenfield land market continues to offer opportunities for buyers.

“Compared to the broader and established residential market, where the Melbourne median house price has surpassed $1 million, the relative affordability of greenfield metropolitan and regional areas continues to underpin the purchasing decisions of many buyers.”




You May Also Like

Melbourne property market sees mom and dad builders flock to outer suburbs for the best bang for buck

The cost of building a house in these top 20 suburbs started at $272,944 and topped out at $387,688.

Australian rental market clocks in a near-40% price growth, while wages struggle to keep up

Rents soared by almost 40% across the pandemic, while wages barely clocked in 20% growth.

Gender gap closes? Women outpace men in overall property ownership

Challenges persist for younger women in achieving homeownership, highlighting the need for targeted solutions.

Exclusive: Top five regional New South Wales housing markets revealed, the affordable alternatives to Sydney

Hotspotting has exclusively revealed to TPT New South Wales housing market’s five best regional hotspots for homebuyers and investors.

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Perth property market: The definitive guide to buying a modular home

Modular homes, misunderstood as inferior, offer efficient, durable alternatives to traditional construction methods.

The 50 square metre solution getting people into their first homes and delivering an answer to ...

Small, modular homes could be a key part of the broader solution to Western Australia's current housing challenges.

The hardest time ever to buy a house in Australia: How Australian home buying got ...

We're currently in a buyer's market, but that doesn't mean Australian house prices are crashing.