According to a study by RPM Real Estate Group, property buyers in Melbourne see more value in lots and lots of homes and land than in existing homes.
During the last quarter of 2019, the Melbourne and Geelong land markets recorded a 17% increase in overall lot sales activity to 3,185. Both markets recorded their eighth consecutive month sales growth in November. In addition, sales activity in December managed to outperform the monthly average despite a slower month.
"Buyers see value in the land market as they can negotiate a larger lot at a good price, with developers keen to move returned title stocks and unsold lots," said Luke. Kelly, head of RPM communities.
The median price of lots in the Melbourne metropolitan area remained moderate, falling 2.1% to $ 308,900 during the quarter and 5% from the same period a year ago. The moderation in median lot prices could be due to the volume of the discounted supply coming back to the market and the overhanging stock which has started to decrease.
"Rising values ??in the established market and moderating prices in the land market have reduced the ratio of land price to house price, which means that buyers see more value in a block of land or a house and land rather than an existing house, "said Kelly.
The quarter also saw a significant recovery in the development site market, attributed to pent-up demand from developers who were waiting for market conditions to stabilize.
The markets for apartments and townhouses in the interior and middle circles also showed positive approval figures. However, there is still a gap between supply and demand.
"New project activity passing through the pipeline is vital since once the supply is absorbed there will have to be readily available stock to meet demand. Otherwise, a shortage will occur , which will put pressure on vacancy rates, rents and prices overall, "Kelly said.
Top suburbs:
mt colah
,
revesby hts
,
Berala
,
st peters
,
Wallend
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