Melbourne’s western growth corridor has continued to dominate new land sales across Melbourne and Geelong in the first quarter of 2023, according to Victorian residential development sales, marketing and advisory agency RPM.
The latest RPM Greenfield Market Report revealed the corridor captured 42 per cent of all sales across the region with 797 new lots sold, which is a 7 per cent decline on the previous quarter.
RPM managing director project marketing Luke Kelly said demand for the corridor is driven by its appeal to families and first-time buyers.
“Couples with children dominated sales during the quarter, representing 59 per cent of purchasers,” Mr Kelly said.
“The majority of buyers, at 71 per cent, indicated they were planning to own and occupy their home, with 69 per cent of those first home buyers.
“[This is an] indicator of this area’s desirability and relative affordability for those stepping in to the market, despite prices remaining slightly higher than the broader region’s average.”
While there was a decline in sales from the previous quarter, RPM said the report shows the dip is inline with the broader market, with new land sales falling 9 per cent across Melbourne and Geelong.
Mr Kelly said consumer confidence remained low on the whole following interest rate rises, the rising cost of living and continued caution around the building industry.
“The reality for many is that their purchasing power has been significantly reduced by interest rate rises and cost of living pressures,” he said.
“[Buyers are] assessing their options in terms of adjusting their buying expectations or delaying their purchasing decision.”
“We believe it will take several continuous months of interest rate holds to see any meaningful turn-around in confidence, so we’re anticipating signs of improvement toward the end of the year.”
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