Sales end 2024 on a stronger note than 2023
Total sales activity across metropolitan and regional growth areas typically slows over December due to fewer trading days. This trend continued, with total gross sales down 19% to 687 lots. Despite weak purchaser sentiment – impacted by reduced borrowing capacity and elevated construction costs – the market showed signs of improvement. December’s sales were 26% higher than the same month in 2023, suggesting that confidence is gradually returning.
Geelong and Ballarat boost their market share
There was a clear split in sales performance, with activity rising significantly in Geelong and Ballarat. As a result, their share of total monthly lot sales increased to a three and a half year high of 12.5% in Geelong and four a half year high of 10.6% in Ballarat. Conversely, lot sales contracted in all other growth corridors, with Melbourne’s northern growth area experiencing a particularly sharp decline. This led to its proportion of total sales falling to just 16%, a six-year low.
Lot prices reach record highs
Melbourne’s median lot price climbed 2.4% in December, following a 2.7% increase in November, reaching a new record of $413,000. This headline figure doesn’t account for typical rebates or discounts, which range between 5% and 10% off the gross lot price, providing buyers with some relief. However, the high net lot price remains a significant hurdle for many potential buyers, highlighted by weaker lot sales. The median lot size in Melbourne remained at 352sqm, pushing up the price per square metre rate. In Geelong, the median lot price spiked 9.6% in December, reaching $416,400. This increase was largely due to a 22% rise in median lot size, which grew to 430sqm.