More titled lots in the Geelong market offer affordability choices for home buyers

Red23, specialist sales and marketing partners for land developments projects across Victoria have just released their latest New Land Update Report.

It reveals the Greater Geelong market has 778 available lots, with titled stock comprising 49 per cent, or 378 lots, a considerable increase from 12 months ago when only 21 per cent of the 623 available lots were titled.

The report also identifies that an additional 25 per cent of the present stock is set to title before the year’s end, adding to the region’s supply of ready-to-purchase land.

While this level of titled stock indicates an oversupply, it provides buyers with immediate opportunities to purchase titled lots amidst improving affordability and incentives, making Geelong an appealing option in the market landscape.

This is timely news as recent building approval data released from the Australian Bureau of Statistics shows that house approvals have risen by 6.1 per cent in the month of September, the highest monthly increase of detached house approvals in two years, confirming that homebuyers have re-entered the market.

Red23 managing director Terry Portelli said Greater Geelong offered nearly half of its available lots as titled, with more in the pipeline.

“This increases and further enhances a diversity of options for buyers in the region.

“Overall, this market reflects a resilient landscape adapting to current conditions.

“While the high level of titled stock in Melbourne presents challenges, it also creates valuable opportunities for buyers looking to secure land.

“In Melbourne’s greenfield market, the significant number of titled lots available allows first-home buyers to take advantage of improving affordability and incentives.”

The report notes that as we conclude Q3 2024, titled lots remain at 31 per cent of available stock and total land availability stands at just over 3,200 lots in Melbourne and Geelong regions, with just under 1,000 lots titled and unsold.

Title delays persist, mostly due to red tape, with 33.6 per cent of stock expected to title before the end of the year.

In other words, more than 1,100 lots are set to title by year’s end, adding to an already oversupplied titled land market.

This compares favourably to 12 months ago where titled lots made up only 10 per cent of available stock, with around 2,300 lots on the market.

However, in September, titled lots accounted for 37 per cent of land sold, supported by increased rebates and discounts, which have made titled lots more attractive to buyers.

Encouragingly, the report notes that despite reduced borrowing power due to higher interest rates, first-home buyers benefit from improved affordability in the greenfield market, with rebates and incentives contributing to making land prices more budget-friendly for this group. This month, the median land price increased by 1.9 per cent, with the median land size steady at 392 sqm.

The Red23 report shows that year-to-date, metro Melbourne has averaged 470 land sales per month, up from 464 per month in 2023, although still below the 740 monthly average seen in 2022.