Victoria breaks land price records with lots over $300,000

Land prices in Melbourne’s key growth corridors have experienced strong growth, increasing 7.7 per cent over the year, with lots in almost every municipality now valued higher than $300,000. 

The latest Oliver Hume Quarterly Market Insights revealed many council areas reached record values, including Melbourne, with a median (conventional) lot price of $334,900 in the three months to September 30.

The fast-growing municipality of Casey recorded the biggest annual change, up 18.5 per cent or $63,100. The median lot price in Casey ended the quarter at $404,000, easing slightly from the previous quarter, down 3.8 per cent.

Geelong recorded a median lot price above $300,000 for the first time, reaching $313,750 in the September quarter 2021, up 8.7 per cent over the quarter.

New residential land in Geelong is now worth $31,700 more than it was 12 months ago, up 11.3 per cent over the year.

Melton also recorded strong value growth with median lot prices increasing by 15.1 per cent, or $44,000, over the year. Whittlesea ended the September quarter up 11.1 per cent.

Oliver Hume Chief Executive Officer Julian Coppini said strong demand for land continued to put upward pressure on prices and pricing momentum remained positive.

“These figures demonstrate the confidence and enthusiasm in the greenfield markets across Victoria,” Mr Coppini said.

“The resilient performance of the land market, in a quarter dominated by Melbourne’s sixth lockdown, is testament to the growing confidence of buyers and the skill and experience of the industry to deliver in very challenging conditions.

“The ending of lockdowns and the easing of COVID-19 restrictions in Victoria is an important milestone for the market and will help to underpin activity across the remainder of 2021 and into the new year.

“We are closely watching the market given recent policy and other changes. The impact of APRA’s changes, in particular, will become clearer in the months ahead.”

Oliver Hume’s National Head of Research George Bougias said Victoria’s greenfield land markets continued to offer tremendous opportunities for buyers.

“The new residential land market, across both metropolitan and regional locations, continues to attract a range of buyers not least because of their value proposition,” Mr Bougias said.

“Compared to the broader and established residential market, where the Melbourne median house price has surpassed $1 million, the relative affordability of greenfield metropolitan and regional areas continues to underpin the purchasing decisions of many buyers.”

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Nicole Madigan

Nicole Madigan is Senior Journalist and Content Producer for Elite Agent.