Geelong land sales increase 72 per cent month on-month

THE tide may have turned on new land sales in our region as buyers return to the Greater Geelong market, with Armstrong Creek taking the lead.

Buyer confidence in Victorian residential estates looks to be on the rise with new home builders more confident that interest rate rises have halted or are in retreat.

Also, the return of a government that hangs its hat on creating more affordable housing and is tough on inflation has added renewed buyer confidence across both greenfield and established housing markets.

Research by Red23 shows that the Melbourne and Greater Geelong land markets experienced a significant upswing in activity, with sales across Metropolitan Melbourne exceeding 650 lots, marking a 20 per cent increase on February and a 53 per cent increase year-on-year.

This is the highest monthly result since September 2023 and signals a boost in buyer activity especially in the Greater Geelong region which recorded a strong performance, with 82 land sales in March, representing a 72% month on-month increase.

The data from Red23 reveals the majority of this demand was centred in Armstrong Creek, reflecting continued interest in the region’s growing housing corridors.

A total of 847 lots are available, 55 per cent of which are titled, indicating a strong uptake in ready-to-build stock.

Buyer activity is being driven by attractive rebates and discounts on titled land, with enquiry levels not only increasing but also improving in quality.

Red23 managing director Terry Portelli said momentum was clearly building across both Metro Melbourne and Greater Geelong, with sales and enquiry numbers strengthening.

“Buyers are showing renewed confidence, especially in titled land, where rebates and quicker build options are encouraging faster decisions.

“Locations like Pakenham, Werribee and Armstrong Creek continue to perform well, while affordability remains a factor, overall demand reflects a stabilising market and strong interest in well-priced, well-located land.”

According to the latest Westpac Consumer Sentiment Survey, buyer sentiment remains mixed nationwide.

While consumers have grown more pessimistic about whether it’s a good time to buy, they are more optimistic about future price growth.

The “time to buy a dwelling” index dropped by 6.5 per cent to 85.7, reversing the modest rally from the past three months. Melbourne remains close to neutral at 99, with Sydney slightly lower at 95.4, while Queensland (75.2) and Western Australia (69) continue to show weaker sentiment, closely aligned with pricing trends in those states.

Meanwhile, Melbourne’s house prices rose 0.5 per cent in March, with an additional 8 per cent uplift in sales volumes, underscoring a recovery in buyer confidence.

Red23 are confident that the overall outlook remains optimistic, with the land markets in both Metro Melbourne and Greater Geelong benefiting from improved enquiry, strong titled land uptake, and steady price growth in key growth areas.

As we move into the second quarter of 2025, both regions are positioned for continued strength driven by solid buyer demand and attractive incentives for new land purchases.