- 24% of buyers signed a contract within the first seven days of enquiry about land
- 32% signed within 8 to 21 days
- Volume of enquiries similar in April compared to April 2021
Local project marketing group Oliver Hume has revealed that new home and land buyers in Melbourne are continuing to lock in purchases at a rapid rate against the fear of missing out.
24% of buyers who enquired for new land through Oliver Hume during April locked in their purchase within seven days. Almost 32% signed a contract within 8 to 21 days, with 9.3% of buyers locking in contracts between 22 to 30 days.
Although overall enquiries plateaued between March and April, the volume on enquiries still remains above the same time last year in spite of the market cooling down. Reservations also rose in April compared to March.
George Bougias, Oliver Hume National Head of Research, noted the Victorian greenfield residential market is transitioning towards “normal conditions” following the record-setting year of 2021.
“Most greenfield land indicators remained resilient in April 2022 suggesting that, despite some challenges, the momentum and the outlook both remain positive,” Mr Bougias said.
“A range of factors continue to underpin demand including a strengthening economy, very low unemployment, the return of overseas migrants and some, albeit limited, wages growth.”
George Bougias, Oliver Hume
Julian Coppini, Oliver Hume CEO of Project Marketing, added the positive momentum that was first observed during the first quarter of 2022 carried into April.
“The market is also facing some key challenges including a continued deterioration in affordability driven by a combination of factors including rising prices, higher interest rates and cost increases,” Mr Coppini said.
“Accelerating inflation, more broadly, could also materially increase the cost of living for some groups. In addition, geopolitical tensions and the forthcoming Federal election have generated some uncertainty.”
Julian Coppini, Oliver Hume
Lots that were sized 400 – 449 sqm were the most popular among buyers, representing 29.8% of all buyers.
A bounce back from first home buyer markets was also recorded in April, which Oliver Hume attributes to the expansion of the Home Guarantee Scheme.
In April, investors’ market share remained at high levels, although it is warned this may dampened by further interest rate rises. However, ongoing rental growth could offset, as could the rebound in the economy and population growth.
