Land buyers from Melbourne almost double
Geelong land sales remain at record highs, underpinned by record low interest rates, stronger buyer confidence and positive momentum in the broader residential market.
Recent research by Oliver Hume, which was commissioned by Villawood Properties, revealed preliminary figures for August were up 175 per cent with 292 sales compared to 106 in the same month last year.
The price gap between metropolitan Melbourne and Geelong continues to close with the median lot price in Geelong being $303,700 compared to Melbourne’s $325,00, a differential of 7 per cent.
Lot size price comparison shows Geelong land prices catching up on metro prices:
350sqm: Geelong $286,000, Melbourne $325,000
400sqm: Geelong $314,000, Melbourne $342,000
448sqm: Geelong $323,000, Melbourne $373,000
The research also shows that people from Melbourne buying in Geelong has almost doubled, from 16.2 per cent in 2020 to 29.7 per cent this year.
The median time for lots to sell has shrunk, most notably for 448sqm lots, from 97 days in 2020 to 30 this year.
Lots of 350sqm have dropped from 90 to 65 days, while 400sqm lots have remained steady, moving only marginally from 64 to 62 days.
The report identifies that the continued impacts of COVID-19 remain the key risks for the market, especially lockdowns and virus mutations, national border closures, negative net immigration for Victoria, the pull forward of sales and potential macro-prudential measures to slow the property market.
From a broader Victorian perspective, weekly sales have been volatile in recent weeks due, in part, to the most recent lockdown, which saw activity moderate.
However, sales have continued to rebound and remain well above long-term average levels and the levels observed immediately before COVID-19’s emergence in February 2020.