Regional housing rebound as buyers return across Victoria

Signs of recovery are emerging in Victoria’s housing market, with regional areas showing resilience as buyer confidence begins to lift.

New CoreLogic data shows Melbourne’s housing values rose slightly in July, up 0.4 per cent, while sales volumes increased 8 per cent year-on-year. But it is regional growth corridors that are drawing attention, as stabilising titled land and shifting buyer demand put areas such as Geelong, Mitchell and Whittlesea in the spotlight.

Greater Geelong recorded a 1.22 per cent increase in median land price in July, supported by a 20 square metre uplift in median lot size. Analysts say smaller lots were absorbed quickly, leaving larger blocks available longer, which pushed up the regional median.

Whittlesea also posted strong growth, with land values rising 4.01 per cent month-on-month, while Mitchell added 1.16 per cent. By contrast, Hume edged slightly lower and Casey held steady at $486,000 despite smaller lot sizes.

Red23 Managing Director Terry Portelli said regional markets were playing a critical role in the state’s housing recovery.

“After a challenging period, we are now seeing confidence return to both the established and Greenfield markets,” Mr Portelli said.

“The combination of interest rate cuts, stronger sentiment, and sharper pricing has encouraged more buyers back into the market. Importantly, titled stock levels are stabilising, which provides greater certainty for purchasers.”

The Greenfield market recorded its strongest quarter of sales since mid-2022, reflecting stabilising demand and increased land availability across the outer suburbs and regional corridors. Developers have also reported stronger absorption of titled lots, supported by sharper pricing and incentives.

Looking ahead, most major banks expect another interest rate cut in November, with the cash rate tipped to settle at 3.2 per cent by the end of 2025.

For more information, visit www.red23.com.au.