{"id":43023,"date":"2021-11-25T11:58:32","date_gmt":"2021-11-25T00:58:32","guid":{"rendered":"https:\/\/timesnewsgroup.com.au\/geelongtimes\/news\/making-sense-of-the-new-land-market-during-recent-ccovid-19-lockdowns\/"},"modified":"2021-11-25T12:11:58","modified_gmt":"2021-11-25T01:11:58","slug":"making-sense-of-the-new-land-market-during-recent-ccovid-19-lockdowns","status":"publish","type":"post","link":"https:\/\/timesnewsgroup.com.au\/geelongtimes\/real-estate\/making-sense-of-the-new-land-market-during-recent-ccovid-19-lockdowns\/","title":{"rendered":"Making sense of the new land market during recent CCOVID-19 lockdowns"},"content":{"rendered":"

During this year’s COVID-19 lockdowns, the new land market has continued to remain extremely strong throughout Melbourne and Greater Geelong.<\/p>\n

Red23, specialist sales and marketing partners for land developments across Victoria, are witnessing a combination of factors which have created a perfect storm of high demand, low supply and affordability pressures for new land across ‘Greenfield’ areas in Victoria.<\/p>\n

Red23 managing director Terry Portelli said they have seen household savings reach almost 20 per cent during Lockdown 1 in 2020 and is still sitting at a strong 10 per cent, as people have become accustomed to purchasing online.<\/p>\n

“There is a higher level of job security and overall consumer confidence,” Mr Portelli said.<\/p>\n

“The unemployment rate is down to 4.5 per cent, from 6 per cent in July\/August 2020.<\/p>\n

“With low cash rates, it has made buying property appealing despite price growth, but affordability has become an issue for young buyers, particularly first home buyers.<\/p>\n

“Those with equity in their homes and are looking to upgrade or invest have benefitted the most.”<\/p>\n

The current urgency to purchase property is a combination of the increasing median house price hype and low stock availability in the established market, this has pushed many new buyers into the new land market.<\/p>\n

Red23 believes the Australian Prudential Regulation Authority’s (APRA) move to tighten lending standards, will have little effect on investors and upgraders.<\/p>\n

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“It will hurt first home buyers the most, as their time to save a deposit will increase,” Mr Portelli explained.<\/p>\n

“Federal and state Government financial stimulus incentives for first home buyers will remain vital for this market as the year comes to a close.”<\/p>\n

New projects are hitting the market, but at the same time, the same number of projects are selling out.<\/p>\n

There are still approximately 200 active land projects in metropolitan Melbourne and Greater Geelong.<\/p>\n

Areas such as Greater Geelong are selling out the quickest, with re-zoning of new areas needing to be fast tracked.<\/p>\n

With demand remaining strong, we are now seeing land which is being purchased today, not due to title for 24 months across most greenfield corridors.<\/p>\n

Melton and Wyndham municipalities who supply nearly 50 per cent of available stock in Victoria, have a good supply of land for the short term.<\/p>\n

In accordance to the ABS, August 2021 in seasonally adjusted terms, the value of new loan commitments:<\/p>\n