Light at the end of the tunnel for the Victorian new land market

THE Victorian property market may seem to have been in the doldrums over the past few months, but delving deeper into the data, the sector is showing some resilience.

In the new land market, buyer confidence appears to be strengthening as interest rates ease.

CoreLogic data shows that the metropolitan median land price has held steady at $420,000 over the last three months, while the median house price remains relatively affordable at $772,561 with a 0.4% monthly rise.

 

In a continuing trend over the last five years, buyer demographics have shifted with investors fleeing the tax burdened Victoria market, while upgraders and downsizers are building fewer homes.

And it’s this vacuum that has created opportunities for first-home buyers, making it a great time to buy according to real estate specialists Red23.

Red23’s recent research highlights these shifting trends, showing that couples purchasing increased by 9%, while family households declined by 7% and single-family households by 6%.

Red23 managing director Terry Portelli said buyer confidence was improving with first-home buyers still active.

“Market resilience is evident, with strong demand and opportunities available for buyers. “Employment demographics are also shifting with more self-employed buyers, managers, and admin workers entering the market.”

The research also shows that renters are purchasing land within three years, while existing homeowners are staying longer before upgrading or investing.

Further data highlighted home design preferences remain stable, with 77 per cent opting for single-storey homes and 23 per cent for double-storey.

 

Among buyers, 27 per cent plan to build homes of 21–25 square metres, while 20% prefer 16–20 square metres, reflecting affordability and land availability.

The good news for our region is that the Greater Geelong land market has also demonstrated resilience, with steady sales volumes and strong demand.

While land prices have remained stable, new estates continue to attract buyers looking for affordability and lifestyle benefits.

The region’s popularity among first-home buyers and upgraders remains high, with an increasing number of purchasers seeking larger lot sizes.

Red23 forecast demand is expected to persist, driven by infrastructure investment and strong population growth.