According to the Times, data show that land sales in Melbourne’s suburbs are catching up with those in the inner city, and the weakness in the land market over the past three years has been wiped out.
According to the RPM Real Estate Group’s residential market review report, the number of new home land parcels for sale in Melbourne and Geelong increased by 48% to 2,657 parcels in the third quarter of this year. In the previous second quarter, land sales fell by 8.6% to a record low. Compared with the same quarter of the previous year, it is a big drop of 64%. But the decline in land sales seems to have stopped and the market is recovering.
“Our forecast in the last quarterly report is that the land market has bottomed out,” said Luke Kelly, head of the community department at RPM. “The sale of land is mostly to meet the needs of first home buyers who are sensitive to housing prices and employment security. So new land sales in Melbourne and Geelong development areas are lagging behind existing home sales. But just like in other areas of the Australian housing market, lower mortgage rates and credit easing appear to boost buyer demand for land. According to CoreLogic According to the data, in the three months ending October, house prices in Melbourne increased by 5.5%, the highest growth rate in capital cities.
