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  • 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.”

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