WE can safely say the Victorian market has now seen the bottom.<\/p>\n
While recent interest rate cuts do little for the back pocket of most Australians, what it has done is instil confidence that we are over the worst of it \u2013 and it’s okay to transact again.<\/p>\n
Land sales are already up in 2025 and enquiries for new home builders are showing signs of being the best post-COVID.<\/p>\n
New home buyers will enjoy a window of three to six months where there is plenty of opportunity and still motivated landowners and builders ready to make a deal.<\/p>\n
But it will be short lived. Here’s why.<\/p>\n
Registered land, ready to build, will dry up; developer incentives will disappear overnight<\/strong><\/p>\n Land sales are on the move. Buyers in the market today are enjoying motivated land sellers offering rebates and discounts up to $40,000. As interest returns to market and land sales escalate, developers will no longer need to incentivise buyers to purchase and will return their rebates and discounts to their bottom lines.<\/p>\n Titled land will sell out by mid-late 2025, meaning buyers will again\u00a0need to add their names to ballots\u00a0for land releases or purchase lots that may not be ready for some\u00a012 to 18 months.<\/p>\n Builders’ incentives will decline<\/strong><\/p>\n Builders in today’s market are highly competitive and willing to do deals. In some cases, prepared to build at cost to ensure that their forward orders are full, staff and trades employed, and supplier rates maintained for the imminent housing boom. As sales increase over the coming months, builders will again look to creep pricing \u2013 either by price rises or reductions in the value of promotions \u2013 to increase profitability. Furthermore, as we’ve seen above, land titles pushing out into the future means that builders can’t see the revenue immediately and need to protect margins and plan for supply and trade cost increases over time, also increasing prices, known in the industry as CMA (cost movement allowance).<\/p>\n