RPM Group has released its Quarterly Greenfield Market Report, providing key trends across the South-East property market.
The South East Growth Corridor (including growth areas of Casey and Cardinia) increased its share of total sales this quarter to 23 per cent, with annual gross sales rising by 11 per cent to 1,577 lots.
New supply closely matched sales activity with 1,457 lots released.
Demand favoured newly-released stock, with an average time on market lasting less than a month.
Lot pricing pulled ahead in the South East Growth Corridor and widened the gap between other growth areas.
This was highlighted by Casey’s median lot price increasing by 12 per cent to surpass $400,000 in December quarter 2021, a first-time occurrence for any municipality in the growth areas.
Some of the price growth could be attributed to 4.5 per cent median lot size growth in Casey to 392sqm, but per square metre value surpassed $1,000 – another significant milestone.
An overwhelming proportion of buyers in the South East Growth Corridor were owner occupiers, accounting for 87 per cent of all purchasers.
However, upgrader purchasers were more prominent with 51 per cent buying their second or third family home.
Planned build costs increased, with 29 per cent of purchasers intending to spend between $300,000 and $350,000 on construction.
RPM managing director project marketing Luke Kelly said 2021 was a year of records for Melbourne’s land market.
“It’s clear an increasing number of buyers have turned to it as a more affordable choice as median house prices soar well past the million-dollar mark,” Mr Kelly said.
He said the demand for townhouses would likely see an increase.
“Looking at how prices are performing and with the potential of tougher borrowing restrictions, RBA rate rises on the horizon and international borders reopening, the need and popularity of townhomes is only set to grow, particularly among the first home buyer cohort,” Mr Kelly said.
The quarterly report demonstrated an ongoing strength of new home demand and an increase of buyers turning to townhome development as a more affordable alternative to the established house market.
During the final quarter of 2021, 6,104 new lots were released in Victoria and momentum in sales activity led to average time on market reducing to just over a month.
